Overview

• Guggenheim initiated coverage on September 11 with a Buy rating and a $70 price target, and a September 17 note reiterated the thesis with roughly 43% potential upside.
• Analysts say fears that AI tools will replace developers are overblown, asserting that coding assistants augment workflows and reduce risk to GitLab’s seat-based model.
• The research cites growing developer headcount and survey results pointing to team expansion, which it expects to translate into higher platform usage.
• Guggenheim highlights accelerating paid-seat growth attributed to GitLab’s Duo AI suite and Ultimate tier, and it expects that momentum to continue.
• The note points to more than 95% gross retention and roughly 90% gross margin, and projects revenue growth of 27% in FY26 and 26% in FY27, while the article’s editors contend some other AI stocks may offer greater upside.