Analyst Koji Ikeda of Bank of America Securities reiterated a Hold rating on Atlassian, retaining the price target of $200.00.
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Koji Ikeda’s rating is based on a combination of factors that reflect both positive and uncertain aspects of Atlassian’s financial outlook. The company reported strong first-quarter results, with Cloud revenue and non-GAAP operating margin surpassing expectations. However, while the near-term growth appears promising, the long-term financial impacts of the accelerated Data Center end-of-life plan remain unclear.
Despite the potential for Cloud revenue to continue growing at a robust pace, the transition from Data Center to Cloud introduces complexities, particularly in revenue recognition and marketplace monetization. Additionally, the upcoming retirement of CFO Joe Binz adds an element of execution risk, as the new CFO will need to manage the ongoing Data Center transition. These uncertainties contribute to maintaining a Hold rating until more clarity is achieved regarding the company’s financial trajectory beyond fiscal year 2026.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $169.00 price target.