Atlassian (NASDAQ:TEAM) Upgraded at Bank of America

Key Points

• Bank of America upgraded Atlassian from “neutral” to “buy” and set a $175 price target, implying 58.85% upside from the stock’s reported $110.17 price.
• Atlassian exceeded quarterly expectations, reporting adjusted EPS of $1.87 versus $1.50 expected and revenue of $1.77 billion, up 27.6% year over year. Cloud revenue increased 31% to $1.21 billion, supported by enterprise demand and AI-enabled tools.
• Analyst sentiment is broadly positive, with 23 buy ratings, five holds and one sell, producing a “Moderate Buy” consensus and average price target of $153.85; however, the company’s negative net margin and elevated valuation remain risks.

Atlassian (NASDAQ:TEAM - Get Free Report) was upgraded by stock analysts at Bank of America from a "neutral" rating to a "buy" rating in a note issued to investors on Friday. The firm currently has a $175.00 price objective on the technology company's stock. Bank of America's price objective indicates a potential upside of 58.85% from the stock's current price.

TEAM has been the subject of several other research reports. Guggenheim set a $115.00 target price on shares of Atlassian in a report on Thursday, April 9th. BMO Capital Markets reduced their price objective on shares of Atlassian from $105.00 to $95.00 and set an "outperform" rating for the company in a research report on Thursday, June 25th. Weiss Ratings reissued a "sell (e+)" rating on shares of Atlassian in a research report on Friday, July 17th. Wall Street Zen cut Atlassian from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 30th. Finally, Cantor Fitzgerald reissued an "overweight" rating and issued a $126.00 target price on shares of Atlassian in a report on Monday. Twenty-three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $153.85.

Atlassian Price Performance

Shares of TEAM opened at $110.17 on Friday. The firm has a market capitalization of $27.96 billion, a PE ratio of -132.73, a P/E/G ratio of 8.14 and a beta of 1.05. Atlassian has a 52-week low of $56.01 and a 52-week high of $189.69. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a 50 day simple moving average of $92.18 and a 200 day simple moving average of $86.48.

Atlassian (NASDAQ:TEAM - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.37. The company had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.66 billion. Atlassian had a negative net margin of 3.50% and a positive return on equity of 6.22%. The firm's revenue was up 27.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.98 earnings per share. Sell-side analysts predict that Atlassian will post 0.81 EPS for the current fiscal year.

Insider Activity

In other news, CFO James Chuong sold 8,838 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total value of $775,534.50. Following the transaction, the chief financial officer owned 288,272 shares in the company, valued at approximately $25,295,868. The trade was a 2.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 3,000 shares of Atlassian stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $89.71, for a total value of $269,130.00. Following the completion of the transaction, the executive directly owned 227,691 shares of the company's stock, valued at approximately $20,426,159.61. This trade represents a 1.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 20,041 shares of company stock valued at $1,801,069 over the last quarter. Corporate insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

A number of large investors have recently modified their holdings of TEAM. Baillie Gifford & Co. lifted its stake in Atlassian by 3.9% in the 4th quarter. Baillie Gifford & Co. now owns 8,431,802 shares of the technology company's stock worth $1,367,132,000 after purchasing an additional 316,276 shares in the last quarter. Exane Asset Management lifted its stake in Atlassian by 419.9% during the fourth quarter. Exane Asset Management now owns 31,363 shares of the technology company's stock worth $5,085,000 after purchasing an additional 25,330 shares during the last quarter. Nicholas Company Inc. lifted its stake in Atlassian by 8.7% during the fourth quarter. Nicholas Company Inc. now owns 306,819 shares of the technology company's stock worth $49,748,000 after purchasing an additional 24,490 shares during the last quarter. Fisher Funds Management LTD boosted its holdings in shares of Atlassian by 11.1% in the 4th quarter. Fisher Funds Management LTD now owns 334,011 shares of the technology company's stock worth $54,440,000 after purchasing an additional 33,485 shares in the last quarter. Finally, Merit Financial Group LLC boosted its stake in Atlassian by 339.8% in the fourth quarter. Merit Financial Group LLC now owns 31,565 shares of the technology company's stock worth $5,118,000 after buying an additional 24,388 shares in the last quarter. 94.45% of the stock is currently owned by institutional investors.

Atlassian News Roundup

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Strong earnings beat: Adjusted EPS was $1.87, well above the $1.50 analyst consensus and up from $0.98 a year earlier. Revenue rose 27.6% year over year to $1.77 billion, surpassing the $1.66 billion estimate. Atlassian rockets after crushing earnings
• Positive Sentiment: Cloud demand remained robust: Cloud revenue grew 31% to $1.21 billion, while Data Center revenue reached $461.9 million, exceeding expectations. Management attributed growth to enterprise software demand, automation and increasing adoption of AI-enabled tools such as Rovo and Jira Service Management. Atlassian beats estimates on strong cloud demand
• Positive Sentiment: Forward guidance supported the rally: First-quarter fiscal 2027 revenue guidance was approximately $1.7 billion, with the reported midpoint about 2.8% above analysts’ estimates. Full-year fiscal 2027 revenue guidance was approximately $7.4 billion, and the company highlighted record annual-contract-value deals of $1 million, $3 million and $5 million. Atlassian stock jumps on positive outlook
• Neutral Sentiment: The magnitude of the move reflects a sharp reset in investor expectations after the earnings beat. However, the stock’s elevated valuation and negative net margin leave less room for execution disappointments, particularly if cloud growth or AI monetization slows.

About Atlassian

Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.

Atlassian's product portfolio centers on tools designed to help teams plan, build and support software and business processes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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