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GitLab (NASDAQ: GTLB) shares rose in early trading Thursday, after JP Morgan upgraded the stock, noting that when the current bear market ends, GitLab is an “growth All-Star” that is likely to reward shareholders.
Analyst Sterling Auty upgraded the overweight stock with a $ 99 target price, noting that software demand fundamentals are still strong and with strong results from Microsoft (NASDAQ: MSFT) and ServiceNow (NYSE: NOW)that is good for GitLab.
GitLab (GTLB) shares are rose more than 6% in early Thursday trading at $ 61.47.
“We believe the results from Microsoft and ServiceNow confirm our belief that the basics of software continue to be excellent,” Auty wrote in a note to clients. “Continued solid earnings results will help restore investor focus from just macro interest-rate concerns to refocusing on company basics.”
Auty added that the COVID-19 pandemic has “boosted the need for companies to automate more business processes” through DevOps and the GitLab range of products for DevOps ”is driving improved efficiency and return on investment for customers. “
Last month, GitLab (GTLB) announced its acquisition of Opstrace, an open source observability platform, to enable GitLab to expand its DevOps platform.