Cantor downgraded GitLab (GTLB) to Neutral from Overweight due in part to rising competition in the DevSecOps space.
The investment firm also lowered its 12-month price target on the stock to $40 from $60.
Cantor analysts Jonathan Ruykhaver and Ben Mitchell cited “intensifying competition” from Microsoft’s (MSFT) GitHub and Atlassian (TEAM). They also indicated there was slower demand from small-to-medium-sized businesses and from the public sector.
“Competitive pressure is increasing as Microsoft continues to strengthen GitHub’s regulatory and AI capabilities, eroding GitLab’s historical advantages in enterprise environments, self-hosting, and data residency,” Ruykhaver said.
“SMB + public sector demand remain soft, net new customer additions are decelerating, with 137 added in F3Q26, down ~33% y/y,” he added.
GitLab shares had inched down 1% during early trading on Wednesday.
Last month, KeyBanc also downgraded GitLab to Sector-Weight from Overweight.
“The continued overhang of AI code generation weighing on developer headcount growth for seat–based models likely remains,” KeyBanc analysts said.