Atlassian initiated with a Hold at Berenberg

Berenberg initiated coverage of Atlassian with a Hold rating and $150 price target. With the shares trading at 10.5-times estimated 2023 sales, a Buy rating would entail pricing in growth expectations for fiscal 2023 and 2024 that may be difficult to meet, given the current macro environment, or sizeable margin expansion, which is unlikely, the analyst tells investors in a research note. Further, the firm sees competition across several of Atlassian’s markets intensifying.