GitLab’s Softening Growth And SMB Weakness Sparks Multiple Price Target Cuts

Despite GitLab delivering a solid quarter overall, analysts pointed to lagging contract‑backlog growth, decelerating subscription revenue expansion, and a conservative outlook for next year’s performance.

• Barclays cut GitLab’s price target to $42 from $44.
• GitLab’s stock traded over 8% lower in Wednesday’s premarket. 

GitLab Inc. (GTLB) has drawn cautious remarks from multiple Wall Street analysts after its third-quarter earnings, with several major brokerages trimming price targets amid signs of softening growth.

Despite GitLab delivering a solid quarter overall, analysts pointed to lagging contract‑backlog growth, decelerating subscription revenue expansion, and a conservative outlook for next year’s performance, according to TheFly.

Slow Payoff From New Strategy

Barclays analyst Raimo Lenschow cut the price target to $42 from $44 and stated that while enterprise and Ultimate-tier subscriptions continue fueling GitLab’s long-term potential, the revamped go-to-market approach is not expected to deliver meaningful impact in the near term. 

Goldman Sachs cut its target from $48 to $42 and held a ‘Neutral’ rating. Additionally, UBS trimmed its valuation to $51 from $60, and maintained a ‘Buy’ view. 

During the third-quarter earnings call, GitLab’s interim CFO, James Shen, warned that even though the results so far this year have been solid, the slowdown among small and mid-sized (SMB) customers is still happening. 

GitLab’s stock traded over 8% lower in Wednesday’s premarket. 

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