Gitlab drops after RBC downgrades rating to 'sector perform'

GitLab

20/04/2026 09:38

** Shares of software development firm Gitlab GTLB.O fall 2.19% to $20.95 premarket

** RBC Capital Markets downgrades stock rating to "sector perform" from "outperform", cuts PT to $25 from $33, representing a 16.7% upside to the stock's last close of $21.42

** Brokerage says near‑term headwinds persist from tough price comparisons, sales risks, layoffs reducing seats, and geopolitical, and competitive pressures while Duo Agent Platform is unlikely to aid short‑term results

** Risk of further job cuts, whether driven by AI or broader cost-cutting, could weigh on sentiment toward GTLB - RBC

** 11 of 29 brokerages rate the stock "buy" or higher, 17 "hold" and 1 "sell"; their median PT is $30 - LSEG-compiled data

** As of last day's close, stock down ~43% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((mail to: Kanishka.Ajmera@thomsonreuters.com))