Morgan Stanley Downgrades GitLab Inc. (GTLB) from Overweight to Equal Weight

On January 12, 2026, TheFly reported that Morgan Stanley had reduced GitLab Inc. (NASDAQ:GTLB)’s terms nonsubjective from $55 to $42. It downgraded it from Overweight to Equal Weight. The institution pointed retired that worries astir increasing contention from AI startups and threats to the enlargement of developer seats are exaggerated. However, it added that it volition instrumentality clip to refute pessimistic assessments. It anticipates that FY27 volition beryllium a twelvemonth of modulation and that maturation could perchance driblet adjacent more. Furthermore, Morgan Stanley identified short-term tactical concerns, specified arsenic the imaginable for archetypal FY27 forecasts to autumn abbreviated of statement projections.

On January 12, 2026, Barclays reduced its terms nonsubjective from $42 to $34 and downgraded GitLab Inc. (NASDAQ:GTLB) from Equal Weight to Underweight. The modification was included successful the prognosis for the bundle manufacture successful 2026. Barclays stated that portion IT spending and macro circumstances are coagulated and valuations are low, it anticipates that the firm’s maturation volition dilatory arsenic it outpaces price. The corp besides stated that a changing marketplace and predominant absorption changes made it challenging to acceptable up the shares.

GitLab Inc. (NASDAQ:GTLB) operates an precocious DevSecOps level for bundle innovation.

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