RBC Downgrades GitLab, Cuts Target to $25

RBC Capital Markets downgraded GitLab to sector perform from outperform, reducing price target from $33 to $25.
Analyst Matthew Hedberg highlighted eight near‑term headwinds, notably a 300‑bp non‑recurring premium price increase and SMB customers representing ~20% of ARR.
Additional pressures include corporate layoffs affecting seat renewals, slower public‑sector growth, geopolitical uncertainty, and competition from GitHub.
RBC sees limited near‑term upside but notes Duo Agent Platform as a medium‑term catalyst, though unlikely to impact short‑term results.