Wolfe Research analysts raised GitLab (NASDAQ:GTLB) to an Outperform rating, setting a price target at $75. This follows GitLab's announced guidance miss, which resulted in an over 20% decline in its stock price yesterday.

Despite the downturn, Wolfe identifies GitLab as a leading contender for rapid growth within the software sector this year, buoyed by multiple product initiatives and significant potential for revenue growth through pricing strategies.

Following this upgrade, GitLab's shares experienced a 5% uptick intra-day today.

The team at Wolfe highlighted a discernible shift in GitLab's customer purchasing patterns in the fourth fiscal quarter, marking a positive transition from the trends observed in the preceding quarter.