Atlassian Corporation (TEAM) PT Raised to $245 at Goldman Sachs
Goldman Sachs analyst Kash Rangan raised the price target on Atlassian Corporation (NASDAQ: TEAM) to $245.00 (from $230.00) while maintaining a Buy rating.
The analyst comments "We reiterate our Buy rating and raise our PT to $245 ($230 prior) following TEAM’s F1Q25 earnings. The stock is +18% AH following beats on Subscription Revenue (+3% vs. Consensus) and OPM (+400bps), driven by DC (+300bps vs. guide) and Cloud (+400bps vs. guide). The stock has outperformed over the last three months as investors have gained confidence in an improving macro backdrop, conservative guidance philosophy, and large Cloud opportunity. The following underpins our conviction in the investment thesis laid out in our August upgrade report: 1) Usage of Atlassian Intelligence has increased more than 10x since January, indicating the broadening of applications can encourage Cloud migrations, seat growth and mix-shift to premium products. Furthermore, we see Rovo catalyzing Cloud growth, while supporting seat expansion and consumption, 2) Core products continuing to display momentum, including 55k customers on JSM (+22% vs. 4Q23) and Confluence and Jira >100k customers, offering a large opportunity for cross-sell, upsell, and price increases, 3) Efforts to build out a high-touch GTM motion are showing initial traction after years of PLG. We view the hiring of Brian Duffy as further evidence Atlassian can scale this motion, and 4) Data Center growth remains healthy with seat expansion and cross-sell still prominent components to the segment’s growth (after pricing). As Atlassian’s GTM business evolves and AI products begin to scale, we expect conviction to build around Atlassian executing on its 20% Cloud CAGR and, LT, for Atlassian to become a $10bn business. This can help support multiple expansion as TEAM (9x EV/CY25 Sales) trades at a discount to Rule-Of comps at 12x."