TSX gains after CPI shows US inflation rose 3%
Investing.com - Canaccord Genuity has reiterated its Buy rating on Atlassian Corporation (NASDAQ:TEAM) with a price target of $230.00. According to InvestingPro data, analyst targets for the stock range from $175 to $480, with the company currently commanding a market capitalization of $44.41 billion.
The firm views Atlassian as a "best-in-class asset" that is implementing initiatives to move Data Center customers to Cloud deployments, which is expected to generate pricing increases. The company’s impressive gross profit margin of 82.84% and strong revenue growth of 19.66% year-over-year support this strategic direction.
Canaccord Genuity noted that Atlassian continues to expand horizontally beyond technical use cases while also moving vertically into larger enterprise markets.
The firm highlighted that Atlassian’s recent acquisitions strengthen its platform value proposition and will likely encourage greater AI adoption and usage, which can be monetized through new consumption-based pricing terms.
The research firm maintained its positive outlook on Atlassian based on the company’s "favorable strategic positioning following these acquisitions and near-historically low valuation."
In other recent news, Atlassian Corporation has completed its acquisition of The Browser Company, known for its Dia and Arc browsers. This move is part of Atlassian’s strategy to develop an AI-powered browser tailored for knowledge workers. Additionally, Atlassian announced its acquisition of DX, an engineering intelligence platform, valued at approximately $1 billion. This acquisition is expected to close by the end of the year, matching the company’s largest previous acquisition of Loom.
Analyst firms have weighed in on these developments, with Bernstein SocGen Group maintaining its Outperform rating and a price target of $296, citing the acquisitions as a factor in their assessment. Wells Fargo initiated coverage on Atlassian with an Overweight rating and a price target of $216, highlighting the company’s cloud and AI potential. Mizuho also reiterated its Outperform rating with a $235 price target after the DX acquisition announcement.
Bernstein further noted potential revenue impacts from upcoming changes in Data Center contracts, maintaining a positive outlook on Atlassian’s stock. These recent developments reflect Atlassian’s active strategy in expanding its product offerings and market reach.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.