Analyst Derrick Wood from TD Cowen maintained a Hold rating on Atlassian (TEAM – Research Report) and decreased the price target to $250.00 from $320.00.
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Derrick Wood has given his Hold rating due to a combination of factors impacting Atlassian’s current and future performance. While the company has shown strong enterprise growth and stable pricing conditions, there are concerns about the uneven growth in the small and medium-sized business sector and potential risks related to data center customer spending. Additionally, the slowdown in sales headcount growth suggests a cautious approach to future hiring.
Despite the attractive valuation following a significant drop in share prices, uncertainties around macroeconomic conditions and AI monetization remain. These factors contribute to a balanced outlook, with expectations of modest revenue growth and a stable fiscal year 2025 guidance. Consequently, Derrick Wood maintains a Hold rating, reflecting both the positive and challenging aspects of Atlassian’s current market position.
In another report released on April 14, Stephens also reiterated a Hold rating on the stock with a $255.00 price target.
Based on the recent corporate insider activity of 556 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.