Morgan Stanley analyst Keith Weiss has maintained their bullish stance on TEAM stock, giving a Buy rating yesterday.
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Keith Weiss has given his Buy rating due to a combination of factors related to Atlassian’s strategic shift towards a cloud-first model. The company’s decision to phase out its Data Center products by March 2029 is expected to enhance revenue and operating margins in the fiscal year 2026, as they will recognize a higher portion of total contract value upfront. This transition is anticipated to drive significant growth in their Cloud segment, with projections of mid-teens growth beyond FY26.
Furthermore, Atlassian’s introduction of the ‘Atlassian Ascend’ program is designed to facilitate a smooth migration for customers transitioning from Data Center to Cloud. This initiative includes enhanced self-service tools for smaller customers, a free ‘Atlassian FastShift’ program to expedite migrations for larger clients, and a dedicated team for complex migrations. These efforts underscore Atlassian’s commitment to innovation and customer support, which are likely to strengthen its market position and drive long-term growth.