Analysts Bump Up Atlassian Price Target Post Q1 Beat

Analysts raised their price targets on Atlassian Corporation PLC TEAM following its Q1 earnings success.
Mizuho analyst Gregg Moskowitz raised the PT to $525 from $440, implying a 17% upside, and reiterated a Buy.
Moskowitz notes that the company reported "very strong" fiscal Q1 results, with significantly accelerating subscription revenue growth and robust customer adds.
Within subscription, all cloud signals appear to be "trending very positively," including revenue growth, free-to-paid conversions, premium edition uptake, and migration activity, says the analyst.
Baird analyst Rob Oliver raised the PT to $520 from $400 and maintained an Outperform.
The analyst said they see datacenter customers migrate to the cloud faster and at the top of the funnel, expanding workflow opportunity and the robust Atlassian partner network and platform as key drivers.
Canaccord analyst David Hynes raised the PT to $500 from $325 and affirmed a Buy.
The analyst said The firm once again raised expectations for near-term subscription growth, which is a positive sign that things are moving in the right direction.
Oppenheimer analyst Ittai Kidron raised the PT to $500 from $420, suggesting 11.7% upside, and reiterated an Outperform.
Atlassian reported a strong Q1 and offered better-than-expected guidance, Kidron notes.
The analyst adds that the results and outlook suggest that Atlassian's cloud migration is unfolding smoothly and appears to be on/ahead of schedule.
Truist analyst Joel Fishbein raised the PT to $500 from $400 but affirmed a Hold after its Q1 earnings beat driven by an acceleration in their cloud business. This is still the early innings of a long runway for growth in the cloud, given enterprise stickiness for Atlassian and its on-prem solutions, but he remains on the sidelines and awaits a better level to put new money to work.
BMO Capital analyst Keith Bachman raised the PT to $515 from $345 and maintained a Market Perform after its Q1 earnings beat.
The analyst notes that the company again demonstrated the ability to successfully navigate its cloud transition, meet user needs, and manage investor expectations.
Bachman adds that given an expanding portfolio, significant customer transitions in FY23 and FY24, and the ability to raise prices in the future modestly, Atlassian estimates could prove to be too low in FY23.
Price Action: TEAM shares traded higher by 7.24% at $447.55 on the last check Friday.

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