Shares jump after earnings beat and raised price targets
Shares of software development firm GitLab GTLB.O jump 20.9% to $54.2 premarket
The company reported Q2 revenue of $286.3 million, beating analysts' estimates of $273.1 million, according to data compiled by LSEG
Q2 adjusted EPS was 24 cents, above expectations of 18 cents; Q3 revenue outlook was largely in line with estimates
CEO Bill Staples said that with AI driving more software creation, security, governance, and control tools become "increasingly valuable"
At least five brokerages raised their price targets on the stock
TD Cowen raised its price target to $55 from $42, saying it was encouraged by signs of early dividends from GTLB's new pricing and more AI-generated code resulting in tailwinds for its integrated security platform
Eight analysts rate the stock "Buy" or higher, 19 "Hold" and two "Sell" or lower, with a median price target of $50, according to data compiled by LSEG
Up to the last close, the stock had gained over 20% year to date
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