Oil prices rise on talk of Russia sanctions; bouncing off recent lows
On Friday, Bernstein analysts increased the price target for Atlassian (NASDAQ:TEAM) Corporation (NASDAQ: TEAM) shares from $270 to $325, while maintaining an Outperform rating. Currently trading at $266.95, the stock sits within a broader analyst target range of $245 to $420. This adjustment follows Atlassian’s impressive second-quarter fiscal year 2025 earnings, which surpassed expectations with significant revenue growth. According to InvestingPro data, the company has achieved a robust 23.19% revenue growth over the last twelve months.
The company’s revenue for the quarter exceeded guidance by 4%, marking the largest beat since early 2022, excluding the final quarter of server migration. With an impressive gross profit margin of 81.82% and a market capitalization of $69.52B, Atlassian demonstrates strong operational efficiency. Notably, this growth was achieved without the added impact of new product releases, such as Rovo, which is still in its early stages, or from recent pricing increases. Additionally, the quarter’s revenue was more back-weighted than usual due to the closing of large deals too late to be included in the quarter’s revenue recognition. InvestingPro subscribers can access 10+ additional key insights and a comprehensive Pro Research Report about Atlassian’s financial health, which is currently rated as GOOD.
Analysts at Bernstein are closely monitoring the potential of Rovo to contribute to Atlassian’s revenue. While the exact impact of Rovo is not yet clear, it is considered to be a significant opportunity that could provide additional upside to current revenue models. Furthermore, there is an expectation of seat growth rebound, which could present further upside not currently accounted for in their projections. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading above its intrinsic value, suggesting investors should carefully consider entry points.
The strong financial performance of Atlassian in FQ2’25 is a clear sign of the company’s robust health and growth trajectory. Bernstein’s revised price target reflects confidence in Atlassian’s future revenue potential and the anticipated success of its new products and pricing strategies. The company’s ability to exceed revenue guidance without these factors suggests a strong foundation for continued success.
In other recent news, Atlassian Corporation has been making waves with a series of positive financial developments. Following a strong performance in the second fiscal quarter of 2025, Cantor Fitzgerald raised the Atlassian stock target to $304 while maintaining a neutral rating. Scotiabank (TSX:BNS) also lifted its stock target to $330, noting the company’s impressive growth with revenue increasing by 23.19% over the last twelve months.
Meanwhile, Mizuho (NYSE:MFG) analysts expressed confidence in Atlassian’s multi-year growth potential, highlighting the company’s pricing power and the anticipated significant migrations from Data Center to Cloud, lifting their stock target to $355. Canaccord Genuity increased its price target on Atlassian stock to $375, maintaining a Buy rating, emphasizing Atlassian’s robust strategy, innovation track record, and opportunities in the AI and enterprise sectors.
JMP Securities reiterated a Market Outperform rating on Atlassian, following adjustments to the company’s future earnings projections. They raised their non-GAAP earnings per share (EPS) estimates for fiscal years 2025, 2026, and 2027, citing continued revenue growth. These recent developments indicate a positive financial trajectory for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.