Truist Lowers GitLab (GTLB) PT to $35 Citing AI Strategy Importance, Terminal Value Concerns

2 hours ago 2

Maham Fatima

Mon, February 9, 2026 astatine 11:06 AM CST 2 min read

GitLab Inc. (NASDAQ:GTLB) is 1 of the best IPO stocks to bargain close now. On February 5, Truist reduced its terms people for GitLab to $35 from $42 portion keeping a Hold standing arsenic portion of a wider investigation of the infrastructure bundle sector. The steadfast noted that existent marketplace unit is chiefly driven by concerns regarding semipermanent terminal worth alternatively than contiguous fundamentals, highlighting the expanding value of AI-centered strategies.

According to Truist, companies relying connected seat-based gross models were the sector’s weakest performers successful 2025 and person continued to underperform successful aboriginal 2026. Consequently, the steadfast views the palmy adoption of AI usage cases and a modulation distant from seat-based deployments arsenic captious strategical requirements for these firms.

Earlier connected January 12, Morgan Stanley downgraded GitLab Inc. (NASDAQ:GTLB) to Equal Weight from Overweight and lowered its terms people to $42 from $55. While the steadfast believes that concerns regarding contention from AI startups and risks to developer spot maturation are exaggerated, it expects that disproving these bearish views volition instrumentality time. Consequently, the expert views FY2027 arsenic a modulation play apt characterized by a further maturation slowdown and identifies near-term tactical risks.

Truist Lowers GitLab (GTLB) PT to $35 Citing AI Strategy Importance, Terminal Value Concerns

GitLab Inc. (NASDAQ:GTLB), unneurotic with its subsidiaries, develops bundle for the bundle improvement lifecycle successful the US, Europe, and the Asia Pacific.

While we admit the imaginable of GTLB arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.