Truist Reduces PT on GitLab Inc. (GTLB) to $25, Cites Demand Softness and Model-Related Pressures

GitLab Inc. (NASDAQ:GTLB) is one of the 10 best low-priced AI stocks to buy now.

As of March 4, 2026, Wall Street responded differently to GitLab Inc. (NASDAQ:GTLB) when analysts reevaluated the stock in light of its most recent results. Despite strength in major enterprise accounts, Truist lowered its price target to $25 from $35 and kept a Hold rating, noting modeling-related headwinds and inadequate demand affecting the FY2027 outlook. The cautious tone underlines concerns about the durability of short-term growth.

On the same day, RBC Capital reaffirmed its Outperform rating while lowering its target from $40 to $33. Although RBC noted persistent difficulties in the SMB segment, it indicated that a portion of the Q4 revenue beat was driven by non-recurring events. The firm also highlighted customer churn at its lowest in four years and robust enterprise growth.

On March 3, 2026, GitLab Inc. (NASDAQ:GTLB) released its earnings report, in which Q4 revenue jumped 23% year-over-year to $260.4 million, FY2026 revenue grew more than 26% to $955.2 million, and FY2027 revenue was projected at between $1.10 billion and $1.12 billion.

GitLab Inc. (NASDAQ:GTLB) is an AI-powered DevSecOps platform that enables organizations to optimize software development, increase security, and accelerate digital transformation with an integrated lifecycle solution.

While we acknowledge the potential of GTLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.