Atlassian stock steady as Raymond James reiterates Outperform on Browser Company deal

Published 04/09/2025, 17:04
Atlassian stock steady as Raymond James reiterates Outperform on Browser Company deal

Investing.com - Raymond James maintained its Outperform rating and $250.00 price target on Atlassian Corporation (NASDAQ:TEAM) following the company’s acquisition announcement. The target represents significant upside potential from the current stock price of $169.74, though InvestingPro data shows the stock has declined nearly 38% over the past six months.

With impressive gross profit margins of 83% and annual revenue of $5.2 billion, Atlassian has entered into a definitive agreement to acquire The Browser Company of New York, creators of the Dia and Arc browsers, in a $610 million cash deal that includes The Browser Company’s cash holdings. InvestingPro analysis reveals 10+ additional insights about Atlassian’s financial health and growth prospects.

The acquisition is not expected to materially impact Atlassian’s financial performance for fiscal years 2026 or 2027, according to Raymond James.

Raymond James believes the strategic importance of the acquisition lies in evolving the knowledge worker experience with an AI-powered browser that addresses tab sprawl and interacts with SaaS app content within the browser environment.

The firm expects Atlassian’s browser vision to integrate with existing organizational knowledge repositories, potentially driving productivity and creating a consolidated experience for using various applications rather than using tools individually.

In other recent news, Atlassian Corp Plc reported its Q4 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.98 compared to the anticipated $0.81. This represents a 20.99% surprise, highlighting stronger-than-expected financial performance. Despite this positive earnings report, the company’s stock experienced a decline in after-hours trading. The decline is occurring amidst broader market volatility and investor concerns regarding future guidance. These developments come as analysts and investors continue to scrutinize Atlassian’s financial health and market position. The earnings beat underscores Atlassian’s ability to generate higher revenue than analysts had projected. However, the stock’s reaction suggests that investors remain cautious about the company’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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