09:56 AM EST, 12/06/2024 (MT Newswires) -- Gitlab ( GTLB ) remains a "favorite" growth idea after reporting better-than-expected Q3 results, with revenue growth accelerating to 31% year-over-year, RBC Capital Markets said in a note Friday.

Gitlab ( GTLB ) reported fiscal Q3 non-GAAP net income late Thursday of $0.23 per diluted share on a revenue of $196 million, beating market expectations for adjusted EPS of $0.16 on revenue of $187.9 million.

RBC highlighted that an upward revision of fiscal 2025 revenue growth guidance "now points to 30% growth vs. 28% previously along with better profitability."

RBC said it believes GitLab's ( GTLB ) newly appointed Chief Executive Officer Bill Staples is a "good fit for the role," adding that it expects a "seamless transition."

RBC raised its price target on GitLab's ( GTLB ) stock to $80 from $73, while reiterating an outperform rating.

Gitlab ( GTLB ) shares were up 4.5% in early Friday trading.

Price: 69.74, Change: +3.70, Percent Change: +5.60