Atlassian price target raised to $304 from $290 at Bernstein

Bernstein raised the firm’s price target on Atlassian (TEAM) to $304 from $290 and keeps an Outperform rating on the shares. The firm notes Atlassian’s stock remains out of favor, and not just because of the large narrative overhang around developer and product team headcount. Bernstein also hears a lot of uncertainty and questions about its recently announced Data Center end of life, how to get visibility into Cloud’s organic growth strength, and how “inorganic” revenue should evolve between Data Center and Cloud in the face of changing license terms and impacts on revenue recognition. While the firm says it can’t dispel the narrative issues easily, it does think it’s possible to get more confidence in projecting and tracking the revenue trajectory through the EOL.