TD Cowen analyst Derrick Wood has maintained their neutral stance on TEAM stock, giving a Hold rating on October 24.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Derrick Wood’s rating is based on a combination of factors that reflect both positive and cautious outlooks for Atlassian. The company has shown consistent demand trends and is expected to report solid revenue performance for the upcoming quarter, boosted by recent revenue recognition changes and mergers and acquisitions activities. Despite these positive indicators, there are some concerns about the company’s new go-to-market strategies and AI positioning, which still require time to fully prove their effectiveness.
Additionally, while Atlassian’s valuation appears attractive at approximately 21 times enterprise value to free cash flow for the fiscal year 2026, the company’s transition away from Data Center licenses and the associated revenue recognition changes pose potential risks. The management’s cautious revenue guidance, slightly below market expectations, also reflects prudence in accounting for macroeconomic volatility and execution risks. These factors contribute to Derrick Wood’s decision to maintain a Hold rating, with a price target set at $205.
According to TipRanks, Wood is a 5-star analyst with an average return of 8.9% and a 52.62% success rate. Wood covers the Technology sector, focusing on stocks such as Oracle, Salesforce, and Adobe.
In another report released on October 24, UBS also maintained a Hold rating on the stock with a $185.00 price target.