Bernstein reiterates Outperform rating on Atlassian stock amid guidance debate

Published 15/07/2025, 13:46
Bernstein reiterates Outperform rating on Atlassian stock amid guidance debate

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $310.00 price target on Atlassian Corporation (NASDAQ:TEAM), which currently trades at $191.61 after declining nearly 13% in the past week. According to InvestingPro data, analyst targets range from $215 to $420, with the stock currently showing a slight undervaluation.

The firm’s analysis comes amid what it describes as significant investor debate about Atlassian over the past month, with many potential investors viewing the stock as attractively priced despite concerns. The company maintains impressive gross profit margins of 82.3% and has achieved 19.1% revenue growth over the last twelve months. InvestingPro offers additional insights through its comprehensive Pro Research Report, available for over 1,400 US stocks including Atlassian.

Bernstein notes that investor anxiety primarily centers on Atlassian’s upcoming fiscal year 2026 guidance and how the company will balance its three-year 20% compound annual growth rate (CAGR) target with expectations for performance that exceeds forecasts.

The research firm indicates that investors generally believe a fiscal year 2026 growth guidance of 17% would be received positively by the market, though Bernstein sees potential for growth exceeding 20%.

Bernstein’s analysis suggests that concerns about Rovo monetization and Product Team/developer employment headwinds may be overstated, with these factors potentially becoming tailwinds rather than challenges for the company.

In other recent news, Atlassian Corporation’s senior unsecured notes received an upgrade from Moody’s Ratings, moving to Baa2 from Baa3, with a stable outlook. Moody’s expects Atlassian’s revenues to grow by 20% or more over the next 12 to 24 months, driven by an increase in cloud subscription revenues. Additionally, Atlassian’s operating profit growth is anticipated to outpace revenue growth during this period. Meanwhile, Cantor Fitzgerald lowered its price target for Atlassian to $256 from $272, maintaining an Overweight rating, citing a shortfall in billings due to fewer multi-year Data Center deals. Stephens also adjusted its price target for Atlassian to $221 from $255, maintaining an Equal Weight rating, while expressing the need for more clarity on the company’s growth rates. TD Cowen reduced its price target for Atlassian to $250 from $320, retaining a Hold rating, and highlighted concerns about IT budget scrutiny and partner structure changes. Despite these challenges, Atlassian remains well-positioned to leverage artificial intelligence trends and cloud growth, according to analysts.

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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