Bank of America Upgrades Atlassian (NASDAQ:TEAM) to Buy

Atlassian (NASDAQ:TEAM) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a report issued on Friday. The brokerage currently has a $175.00 price objective on the technology company’s stock. Bank of America‘s target price suggests a potential upside of 58.85% from the stock’s previous close.

TEAM has been the topic of several other research reports. BTIG Research boosted their price target on shares of Atlassian from $130.00 to $180.00 and gave the company a “buy” rating in a research report on Friday. UBS Group dropped their price target on Atlassian from $105.00 to $95.00 and set a “neutral” rating on the stock in a research report on Friday, May 1st. Barclays upped their target price on shares of Atlassian from $106.00 to $112.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Raymond James Financial reiterated an “outperform” rating on shares of Atlassian in a research note on Tuesday, July 21st. Finally, Morgan Stanley lowered their target price on shares of Atlassian from $290.00 to $120.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Twenty-three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $153.85.

Atlassian Price Performance

TEAM stock opened at $110.17 on Friday. The stock has a market capitalization of $27.96 billion, a price-to-earnings ratio of -132.73, a PEG ratio of 8.14 and a beta of 1.05. The firm’s 50-day moving average price is $92.18 and its two-hundred day moving average price is $86.48. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 1.13. Atlassian has a 12-month low of $56.01 and a 12-month high of $189.69.

Atlassian (NASDAQ:TEAM) last posted its earnings results 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 for the quarter, compared to analysts’ expectations of $1.66 billion. Atlassian had a positive return on equity of 6.22% and a negative net margin of 3.50%.Atlassian’s quarterly revenue was up 27.6% on a year-over-year basis. During the same period last year, the firm earned $0.98 earnings per share. As a group, equities analysts predict that Atlassian will post 0.81 earnings per share for the current year.

Insiders Place Their Bets

In related news, CRO Brian Duffy sold 3,000 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $89.71, for a total transaction of $269,130.00. Following the sale, the executive directly owned 227,691 shares of the company’s stock, valued at $20,426,159.61. This trade represents a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO James Chuong sold 8,838 shares of Atlassian stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $87.75, for a total value of $775,534.50. Following the completion of the sale, the chief financial officer owned 288,272 shares of the company’s stock, valued at $25,295,868. The trade was a 2.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 20,041 shares of company stock worth $1,801,069. Corporate insiders own 36.66% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in TEAM. MV Capital Management Inc. bought a new position in Atlassian during the fourth quarter valued at approximately $25,000. Geneos Wealth Management Inc. boosted its holdings in Atlassian by 447.2% in the first quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company’s stock worth $42,000 after purchasing an additional 161 shares during the last quarter. Basepoint Wealth LLC bought a new stake in Atlassian in the 4th quarter worth approximately $32,000. Garton & Associates Financial Advisors LLC bought a new stake in Atlassian in the 4th quarter worth approximately $32,000. Finally, Bogart Wealth LLC raised its stake in Atlassian by 76.4% during the 4th quarter. Bogart Wealth LLC now owns 217 shares of the technology company’s stock valued at $35,000 after buying an additional 94 shares during the last quarter. 94.45% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Atlassian

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.

Atlassian Company Profile

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.