Goldman Sachs is forecasting a massive upswing for this open source software data hub stock. The firm initiated coverage of GitLab with a buy rating on Monday and a $70 per share price target. Goldman’s forecast implies 98% upside from Monday’s $35.40 close. Analyst Kash Rangan said the company could stand to benefit from steeper investments into artificial intelligence integrations, which includes generative AI. “GitLab is well positioned to see growth recover when the macro backdrop inflects towards a recovery,” Rangan. “The focus on scaling generative-AI features and monetizing the opportunity offer levers of upside LT, in addition to the pricing lift of Premium plans over the next 12-24 months.” The initiation comes a day after the company reported a smaller-than-expected loss for the first quarter. GitLab’ second-quarter revenue guidance was also better than expected. Shares jumped more than 20% Tuesday. GitLab serves as collaboration tool for software developers that looks to streamline the development process. GTLB YTD mountain GitLab stock has slipped roughly 22% from the start of 2023. — CNBC’s Michael Bloom contributed to this report.
