Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Bernstein SocGen Group maintained its Outperform rating and $296 price target on Atlassian Corporation (NASDAQ:TEAM), currently trading at $147.74 and near its 52-week low, as the firm reassessed potential revenue impacts from upcoming license component changes in Data Center contracts. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $175 to $480.
The research firm initially estimated the license component would increase from 20% to 30-40% of total contract value (TCV), but subsequent conversations with Atlassian indicated higher benchmarks might apply, including its historical Server product (license 50% of TCV) and Oracle license models (license 70-80% of TCV).
Bernstein noted the accounting change stems from Data Center contracts’ expected lifetime being truncated by end-of-life dates, with final details expected during Atlassian’s FQ1’26 earnings report.
The firm calculated that a 50%+ license component could generate a much larger FY26 revenue tailwind than previously estimated, potentially increasing Bernstein’s published FY26 model by as much as $200 million once formal details are announced.
Bernstein is waiting for the earnings announcement before making formal changes to its financial model, while maintaining its $296 price target and Outperform recommendation on Atlassian stock.
In other recent news, Atlassian Corporation has announced a significant acquisition, agreeing to buy engineering intelligence company DX for approximately $1 billion in cash and restricted stock. This acquisition is aimed at helping enterprises measure the effectiveness of their artificial intelligence investments in engineering teams. By integrating DX into its suite of tools, Atlassian plans to offer customers data-driven insights into developer productivity and satisfaction. The company also made headlines with another acquisition, purchasing The Browser Co. for $610 million, both of which are expected to close before the end of the year. These moves come as analysts at Bernstein and Mizuho maintain their Outperform ratings on Atlassian stock, with price targets set at $296.00 and $235.00, respectively.
Additionally, Wells Fargo has initiated coverage on Atlassian with an Overweight rating and a price target of $216.00, citing strong pricing, upsell and cross-sell opportunities, and ongoing cloud migrations as key factors. In another development, Atlassian appointed AI entrepreneur Jason Warner to its Board of Directors, effective October 1, 2025. Warner will replace Heather Mirjahangir Fernandez, who is set to retire from the board at the end of September 2025. These recent activities highlight a period of strategic growth and leadership changes for Atlassian.
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