The number of innovative companies using the GitLab platform is growing
The investment firm Needham noted an increase in the attractiveness of the Internet platform for software development GitLab Inc. (GTLB). At the same time, the growth of interest in data protection may become a new driver. According to Needham analyst Mike Cikos, the GitLab platform is increasingly becoming a center for developing innovative software. The platform by specialists who create software that meets new requirements.
In particular, we are talking about the DevSecOps segment of the GitLab platform is the development of software that has practical data protection algorithms built into it from the very beginning. GitLab supports this trend and can become a strong driver of user base growth. The Needham analyst also noted the potential of GitLab in increasing monetization, which can ensure an increase in the profitability of the platform. Against this background, Needham raised the recommendation on GTLB shares to “buy” and set a target price of $70.
A similar positive recommendation from Goldman Sachs, in which we changed the offer on GTLB from “Neutral” to “Buy” and raised the target price from $69 to $80 at the end of June 2022. Goldman Sachs believes that GitLab can maintain high growth rates over the next three years. Currently, GitLab has more than 30 million registered users who represent about 100 thousand companies. It should note that GitLab entered the public market in the fall of 2021. Therefore, its shares remain volatile. However, the company’s history has more than eight years, and during this time, it has implemented many thousands of projects in the field of software development.
