Atlassian price target raised to $300 from $235 at Oppenheimer

Oppenheimer analyst Ittai Kidron raised the firm’s price target on Atlassian to $300 from $235 and keeps an Outperform rating on the shares. The firm is positive on Atlassian and highlights it as one of its top picks for 2024. Key drivers for the year include: improving macro environment that can drive recovery in free-to-paid conversions/seat expansion; reacceleration in cloud growth aided by expanding functionality; and revenue tailwinds due to price increases, expiring discounts, and new products. In addition, Oppenheimer believes Atlassian is still early in its penetration of ITSM and Work Management, which can provide a long tail of over 20% topline growth. Ultimately, the firm thinks Atlassian is in an excellent position to deliver upside in 2024/2025 and build cloud momentum with larger customers.