GitLab Inc. (NASDAQ: GTLB) is gaining attention on Wall Street as an AI stock. Rosenblatt initiated the stock as “Buy” with a $58 price target, citing growth potential and share gains. The firm believes GitLab is well-positioned for growth in the software development lifecycle.

Rosenblatt highlights the complexity of application development and the adoption of AI-assisted coding, which is favorable for GitLab. The firm believes that generative AI will lead to more code creation, benefiting platforms like GitLab that manage the full software development lifecycle.

There is significant growth potential for GitLab in selling higher-tier plans and AI-based add-on products. With only a quarter of paying users on the Ultimate plan, there is room to grow recurring revenue across its customer base. Rosenblatt sees significant growth opportunities in the modern cloud and emerging GenAI applications for GitLab.

GitLab Inc. (NASDAQ: GTLB) develops software for the software development lifecycle globally. While GTLB shows potential as an investment, some AI stocks may offer greater upside potential with less downside risk. For insights on undervalued AI stocks benefiting from current trends, check out the recommended report.

Read more at Yahoo Finance: Why Wall Street Thinks AI Will Fuel Its Growth