Expert Outlook: Atlassian Through The Eyes Of 11 Analysts

11 analysts have shared their evaluations of Atlassian TEAM during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Atlassian and provided 12-month price targets. The average target is $234.09, accompanied by a high estimate of $275.00 and a low estimate of $200.00. A decline of 8.04% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

The standing of Atlassian among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Atlassian. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Atlassian compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Atlassian's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Atlassian's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Atlassian analyst ratings.

About Atlassian

Atlassian produces software that helps teams work together more efficiently and effectively. The company provides project planning and management software, collaboration tools, and IT help desk solutions. The company operates in four segments: subscriptions (term licenses and cloud agreements), maintenance (annual maintenance contracts that provide support and periodic updates and are generally attached to perpetual license sales), perpetual license (upfront sale for indefinite usage of the software), and other (training, strategic consulting, and revenue from the Atlassian Marketplace app store). Atlassian was founded in 2002 and is headquartered in Sydney.

Financial Insights: Atlassian

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Atlassian's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 29.89%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Atlassian's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 1.07%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Atlassian's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.25%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Atlassian's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.27%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Atlassian's debt-to-equity ratio stands notably higher than the industry average, reaching 1.1. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.