Atlassian, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Peter Weed from Bernstein maintained a Buy rating on the stock and has a $304.00 price target.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Peter Weed has given his Buy rating due to a combination of factors surrounding Atlassian’s strategic positioning and potential for revenue growth. Despite the current unfavorable sentiment towards Atlassian’s stock, largely due to concerns about developer and product team headcount, as well as uncertainties regarding the Data Center’s end of life, Weed sees opportunities for growth.
Atlassian’s transition from Data Center to Cloud is expected to drive revenue growth in the upper-teens through FY30, with projections of revenue reaching over $12 billion. The company’s understanding and management of the transition, including contract adjustments and pricing strategies, provide confidence in its future performance. Additionally, the updated revenue model, which accounts for the stronger contribution from the Data Center’s end of life, supports a higher price target, reinforcing the Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $320.00 price target.
Based on the recent corporate insider activity of 537 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.