GitLab Inc (GTLB) was initiated with an Overweight rating and $55 per share price target by Cantor Fitzgerald in a note to clients Wednesday.
Analysts at the firm described the company as a generative AI innovation leader in DevSecOps, adding that it is "seeking to capitalize on secular trends in the consolidation of point products and the generative artificial intelligence (Gen AI) wave."
"High profile hacks such as SolarWinds (NYSE:SWI, NC) in 2020 and Log4j vulnerability in 2021 serve as daily reminders of the criticality in securing the software supply chain, a core function GitLab is instrumental in tackling effectively, in our view," explained analysts at Cantor Fitzgerald.
"We believe GitLab's strength in source code management and continuous integration/deployment (CI/CD) sets up as a solid foundation to capture the adjacent areas in DevSecOps, in particular security and IT operations (incident management, observability, compliance), and beyond in Gen AI powered assistant features," they added.
Analysts also noted that GitLab is no stranger to incorporating AI/ML capabilities into its core DevSecOps platform, adding that "the company is at the forefront of leveraging AI/ML."
Furthermore, analysts noted that the recurring theme of consolidation across leading cybersecurity platform players is sensible, and the same theme applies to the DevSecOps sector.