Bank of America tells clients to not sleep on this AI play
GitLab stock could be well positioned heading into fiscal second-quarter results due to be reported after Labor Day, according to Bank of America. “We believe concern that GTLB is at risk from AI is overstated and should be disproven with a steady string of strong results over time,” analyst Koji Ikeda wrote in a Thursday note, adding that investors shouldn’t “sleep on this one” heading into earnings. The Wall Street investment bank reiterated a buy rating on the software development platform in a Thursday note, alongside a $72 per share price target. BofA’s 12-month objective for where it thinks the stock should trade implies 52% upside from Wednesday’s $47.26 close. GTLB YTD mountain GitLab stock in 2025. Ikeda highlighted what he said is an attractive risk/reward on Gitlab stock for investors. The stock trades about in line with peer infrastructure software companies but is projected to grow much faster, he said. The analyst also pointed to the company’s artificial intelligence tools as an additional tailwind. “Our recent rounds of checks suggest that GitLab’s leadership position as a [Development, Security and Operations] efficiency gaining platform continues to be viewed favorably,” Koji said. “We believe this should drive healthy adoption of its core offering and its newer AI solutions.” “While there is still a heavy debate if code-generation tools are credible disruptors to GitLab’s value proposition, one thing is certain – AI is generating a lot more code and understanding context and purpose is becoming a lot harder to do,” the analyst added. “This is where GitLab helps.” GitLab next Wednesday Sept. 3 will report fiscal second-quarter results for the period that ended July 31. Analysts estimate earnings per share of 16 cents on revenue of $226.9 million, according to FactSet data. After Thursday’s 5% rally, Gitlab shares have pulled back 12% so far in 2025.
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