🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Needham Sees GitLab Increasingly Becoming Center Of Gravity For Organizational Software Innovation

Published 07/07/2022, 16:43
Updated 07/07/2022, 17:43
© Reuters.  Needham Sees GitLab Increasingly Becoming Center Of Gravity For Organizational Software Innovation
GRVY
-

  • Needham analyst Mike Cikos initiated coverage on GitLab Inc (NASDAQ: GTLB) with a Buy rating with a price target of $70 (21% upside).
  • GitLab delivers a single application to drive cross-function collaboration and improve customer efficiencies for Application Development processes, Cikos noted.
  • He believes GitLab is increasingly becoming the center of gravity for organizations' software innovation, where GitLab's DevOps Platform benefits from its dual-flywheel development strategy.
  • Notably, the company's more than $40 billion TAM is predominantly Greenfield and competes against DIY tools.
  • Its nearest competitor Microsoft Inc's (NASDAQ: NASDAQ:MSFT) GitHub, is present in less than 20% of deals where GitLab competes, and GitLab's win rates are consistent irrespective of GitHub's presence.
  • He views rapid innovation and the frictionless go-to-market as two pillars that can sustain GitLab's growth in an underpenetrated market.
  • He believes the market's adoption of a Platform, GitLab's maturing platform, and the growing shift toward DevSecOps where Security is embedded in DevOps all feature prominently in supporting the uptake of GitLab's Ultimate Tier.
  • He also sees the potential for GitLab to create value by creating new tiers/packages, potentially increasing platform monetization over time.
  • Price Action: GTLB shares traded higher by 3.02% at $57.70 on the last check Thursday.
Latest Ratings for GTLB DateFirmActionFromTo
Mar 2022B of A SecuritiesMaintainsBuy
Feb 2022RBC CapitalUpgradesSector PerformOutperform
Jan 2022JP MorganUpgradesNeutralOverweight
View More Analyst Ratings for GTLB

View the Latest Analyst Ratings

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.