Raymond James analysts upgraded GitLab (NASDAQ:GTLB) to Outperform from Market Perform, setting a price target of $70. The analysts highlighted the potential upside from GitLab’s AI platform, Duo, particularly with the introduction of a higher-priced enterprise version.
They suggest that assuming adoption rates similar to previous forecasts, the new enterprise tier could significantly increase financial projections. For fiscal 2025, the analysts estimate that if 5%-10% of GitLab’s user base adopts Duo, it could generate an additional $25-50 million in revenue, an increase from the previously estimated $15-30 million. This assumption is based on a balanced uptake of both Duo Pro and the new Enterprise offerings.