In a report released today, Fatima Boolani from Citi maintained a Buy rating on Atlassian, with a price target of $240.00.
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Fatima Boolani’s rating is based on several compelling factors. The report highlights that Atlassian’s stock has been underperforming year-to-date, and its current valuation metrics are near five-year lows, which the analyst views as overly punitive. This underperformance is attributed to market misperceptions regarding Atlassian’s competitive strengths, AI monetization potential, and growth prospects in expanding its audience and solution categories.
Furthermore, Boolani anticipates consistent performance in Atlassian’s Cloud services, supported by a stable budgetary environment for its core solutions. The company is also expected to benefit from a more focused enterprise go-to-market strategy, which could lead to consistent earnings beats. Additionally, upcoming price increases in the Data Center segment are expected to drive customer migration to Cloud services, reinforcing Atlassian’s pricing power and providing further upside potential.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $230.00 price target.
Based on the recent corporate insider activity of 542 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TEAM in relation to earlier this year.