The Analyst Verdict: Atlassian In The Eyes Of 24 Experts

In the preceding three months, 24 analysts have released ratings for Atlassian TEAM, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Atlassian, presenting an average target of $323.5, a high estimate of $380.00, and a low estimate of $230.00. Observing a 9.44% increase, the current average has risen from the previous average price target of $295.59.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Atlassian's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Brent Thill |Jefferies |Lowers |Buy | $262.00|$330.00 | |Karl Keirstead |UBS |Lowers |Neutral | $230.00|$330.00 | |Brent Thill |Jefferies |Lowers |Buy | $330.00|$400.00 | |Joel Fishbein |Truist Securities |Lowers |Buy | $300.00|$350.00 | |Brett Huff |Stephens & Co. |Announces |Equal-Weight | $255.00|- | |Steve Koenig |Macquarie |Raises |Neutral | $317.00|$290.00 | |Kash Rangan |Goldman Sachs |Raises |Buy | $370.00|$245.00 | |Ryan Macwilliams |Barclays |Raises |Overweight | $350.00|$275.00 | |Karl Keirstead |UBS |Raises |Neutral | $330.00|$275.00 | |Ittai Kidron |Oppenheimer |Raises |Outperform | $380.00|$300.00 | |Adam Tindle |Raymond James |Raises |Outperform | $330.00|$250.00 | |Jason Celino |Keybanc |Raises |Overweight | $365.00|$315.00 | |Joel Fishbein |Truist Securities |Raises |Buy | $350.00|$300.00 | |Michael Turrin |Wells Fargo |Raises |Overweight | $375.00|$350.00 | |Thomas Blakey |Cantor Fitzgerald |Raises |Neutral | $304.00|$264.00 | |Rob Owens |Piper Sandler |Raises |Overweight | $365.00|$310.00 | |Nick Altmann |Scotiabank |Raises |Sector Perform | $330.00|$250.00 | |Keith Weiss |Morgan Stanley |Raises |Overweight | $370.00|$315.00 | |Gregg Moskowitz |Mizuho |Raises |Outperform | $355.00|$285.00 | |Brent Thill |Jefferies |Raises |Buy | $325.00|$300.00 | |Fatima Boolani |Citigroup |Raises |Buy | $300.00|$255.00 | |Thomas Blakey |Cantor Fitzgerald |Announces |Neutral | $264.00|- | |Keith Weiss |Morgan Stanley |Raises |Overweight | $315.00|$259.00 | |Keith Bachman |BMO Capital |Raises |Outperform | $292.00|$255.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Atlassian. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Get to Know Atlassian Better

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.

A Deep Dive into Atlassian's Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Atlassian's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.35% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -2.97%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -3.4%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Atlassian's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.73%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Atlassian's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.02, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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