GitLab Inc (NASDAQ:GTLB) stock gained after Needham analyst Mike Cikos upgraded the stock from Hold to Buy with a $70 price target.
Cikos noted that GitLab has expanded its product offerings, with Ultimate gaining traction due to innovations like Duo Pro Enterprise and Dedicated. The analyst expects increased adoption of Ultimate compared to Premium, driven by stronger Enterprise sales and GitLab’s compliance and security features, which large organizations value.
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He said premium SKU pricing changes will also contribute to revenue growth, providing a tailwind into fiscal 2026.
Cikos noted that strong incremental margins, currently around 40%, support the company’s ability to surpass revenue expectations for the October quarter.
The analyst said that the debate over Premium versus Ultimate is less relevant in the current landscape, where Enterprises have larger budgets …
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