Atlassian price target raised to $295 from $290 at Bernstein

Bernstein analyst Peter Weed raised the firm’s price target on Atlassian (TEAM) to $295 from $290 and keeps an Outperform rating on the shares. The firm notes Atlassian’s Q3 earnings demonstrated continued Cloud growth reaching 28.6% year-over-year, which is implicitly at or over 20% after the steady “mid-to-high single digit” benefit from Data Center migrations and 135bps inorganic benefit from their DX acquisition. The bottom line also beat by an even larger amount, even before the impact of their recent RIF / re-org that will be a larger benefit to future quarters, Bernstein adds. Not surprisingly the stock is up in the aftermarket, the firm says.