Atlassian should be bought on dip ahead of Q4 report, says Jefferies

Jefferies notes that Atlassian (TEAM) shares are down 17% year-to-date, which the firm attributes to software developer role layoffs, skepticism on Rovo’s monetization, lingering concerns from fiscal Q3 Cloud revenue coming in below consensus and Q4 guidance embedding disruption from go to market changes. However, the firm would “buy the dip” as it thinks the fiscal Q4 report may be a “clearing the deck” event, the analyst tells investors. Jefferies has a Buy rating and $262 price target on Atlassian shares.