Bank of America Initiates Coverage on Atlassian (NASDAQ:TEAM)

Key Points

• Bank of America has initiated coverage on Atlassian (NASDAQ:TEAM) with a "neutral" rating and a price target of $200.00, indicating a potential upside of 17.21% from its current price.
• Other analysts, including Guggenheim and Citigroup, have issued "buy" ratings with price targets ranging from $225.00 to $240.00, reflecting a generally positive outlook on Atlassian's stock.
• Atlassian reported a 22.3% year-over-year revenue increase with an earnings per share of $0.98, surpassing analysts' expectations of $0.83.

Equities research analysts at Bank of America began coverage on shares of Atlassian (NASDAQ:TEAM - Get Free Report) in a report released on Tuesday,Benzinga reports. The firm set a "neutral" rating and a $200.00 price target on the technology company's stock. Bank of America's price objective suggests a potential upside of 17.21% from the stock's current price.

A number of other research analysts have also commented on TEAM. Guggenheim assumed coverage on shares of Atlassian in a research note on Thursday, September 11th. They issued a "buy" rating and a $225.00 price target on the stock. Wall Street Zen upgraded shares of Atlassian from a "hold" rating to a "buy" rating in a research note on Saturday, September 13th. Citigroup decreased their price target on shares of Atlassian from $300.00 to $240.00 and set a "buy" rating on the stock in a research note on Monday, August 18th. Raymond James Financial decreased their price target on shares of Atlassian from $300.00 to $250.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Finally, UBS Group reiterated a "hold" rating on shares of Atlassian in a research note on Monday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Atlassian currently has an average rating of "Moderate Buy" and an average target price of $253.04.

Atlassian Stock Up 0.9%

Shares of TEAM stock opened at $170.63 on Tuesday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.22 and a current ratio of 1.22. The firm's 50-day moving average is $178.22 and its 200-day moving average is $199.06. The stock has a market cap of $44.76 billion, a price-to-earnings ratio of -172.35 and a beta of 0.95. Atlassian has a 52-week low of $155.37 and a 52-week high of $326.00.

Atlassian (NASDAQ:TEAM - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The technology company reported $0.98 EPS for the quarter, beating analysts' consensus estimates of $0.83 by $0.15. Atlassian had a negative net margin of 4.92% and a negative return on equity of 14.77%. The business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same quarter in the prior year, the business earned $0.66 EPS. Atlassian's quarterly revenue was up 22.3% on a year-over-year basis. Atlassian has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. Sell-side analysts predict that Atlassian will post -0.34 EPS for the current year.

Insider Activity

In other news, Director Scott Farquhar sold 7,665 shares of the firm's stock in a transaction on Monday, July 7th. The shares were sold at an average price of $214.49, for a total transaction of $1,644,065.85. Following the completion of the transaction, the director owned 459,900 shares of the company's stock, valued at approximately $98,643,951. This trade represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, President Anutthara Bharadwaj sold 7,728 shares of the firm's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $163.43, for a total transaction of $1,262,987.04. Following the transaction, the president directly owned 182,801 shares of the company's stock, valued at $29,875,167.43. The trade was a 4.06% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 536,278 shares of company stock valued at $99,238,836. Insiders own 38.55% of the company's stock.

Hedge Funds Weigh In On Atlassian

Large investors have recently modified their holdings of the business. Norges Bank acquired a new stake in shares of Atlassian during the second quarter worth $377,794,000. Artisan Partners Limited Partnership increased its position in shares of Atlassian by 66.3% during the second quarter. Artisan Partners Limited Partnership now owns 3,878,133 shares of the technology company's stock worth $787,610,000 after buying an additional 1,545,546 shares during the period. Nuveen LLC acquired a new stake in shares of Atlassian during the first quarter worth $327,665,000. AQR Capital Management LLC increased its position in shares of Atlassian by 145.6% during the first quarter. AQR Capital Management LLC now owns 1,715,287 shares of the technology company's stock worth $354,858,000 after buying an additional 1,016,902 shares during the period. Finally, DNB Asset Management AS increased its position in shares of Atlassian by 2,676.8% during the second quarter. DNB Asset Management AS now owns 765,678 shares of the technology company's stock worth $155,502,000 after buying an additional 738,104 shares during the period. Institutional investors own 94.45% of the company's stock.

About Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams.

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