Bitcoin price today: dips below $112k, near 6-wk low despite Fed cut bets
On Friday, Cantor Fitzgerald analyst Thomas Blakey adjusted the price target for Atlassian Corporation (NASDAQ:TEAM) shares, bringing it down to $256 from the previous $272, while maintaining an Overweight rating on the stock. According to InvestingPro data, analysts maintain a bullish consensus on TEAM with price targets ranging from $225 to $420, suggesting potential upside despite the stock’s recent decline of over 7% in the past three months. The revision follows Atlassian’s third-quarter fiscal year 2025 results, which were in line with expectations, accompanied by a stronger-than-anticipated free cash flow (FCF). However, the company experienced a shortfall in billings due to a lower number of multi-year Data Center deals signed within the quarter. The deadline for signing these deals was February 11, 2025, leading many Data Center customers to opt for one-year agreements instead.
The scarcity of multi-year Data Center contracts also had a negative impact on the Marketplace revenue during the third quarter. Furthermore, the closure of Enterprise Cloud deals occurred later in the quarter, which resulted in less upside in Cloud revenues. Despite these challenges, the company saw a better-than-expected rate of cloud migrations from Data Center and stable small and medium-sized business (SMB) seat growth for the fifth consecutive quarter. The company maintains impressive gross profit margins of nearly 82% and has achieved revenue growth of 23% over the last twelve months, according to InvestingPro data.
Blakey highlighted that the demand for cloud services remains strong, with improving close rates observed in April, although these were not included in Atlassian’s typically conservative guidance for the fourth quarter of fiscal year 2025. Following what the analyst described as a "noisy quarter," the price target was adjusted to $256. This new target is based on a slightly lower multiple of 9.5 times the enterprise value to calendar year 2026 revenue, which aligns with the one-year next twelve months (NTM) average multiple. The adjustments take into account the various factors influencing Atlassian’s performance.
Despite the adjustments, Cantor Fitzgerald views Atlassian as well positioned to capitalize on artificial intelligence spending trends that are focused on enhancing workflow and collaboration within large organizations. The firm believes that Atlassian’s ongoing innovation and efforts to transition customers to the cloud, leveraging its unified data platform, will continue to drive the company’s growth. With a market capitalization of approximately $56 billion and a five-year revenue CAGR of 29%, Atlassian shows strong growth potential. For a comprehensive analysis of Atlassian’s valuation and growth prospects, including 8 additional exclusive ProTips and detailed financial metrics, check out the full research report available on InvestingPro.
In other recent news, Atlassian Corporation’s financial outlook has been a focal point for analysts. Stephens analyst Brett Huff adjusted Atlassian’s stock price target to $221 from $255, maintaining an Equal Weight rating. Huff’s adjustment comes after Atlassian’s third-quarter performance, which reportedly did not meet the high expectations set by the market. Similarly, TD Cowen analyst Derrick Wood reduced the stock price target to $250 from $320, citing both stable growth trends and emerging concerns about IT budget scrutiny and partner structure changes. Wood also retained a Hold rating on the stock, reflecting a cautious stance given the current economic environment.
In addition to financial assessments, Atlassian announced changes in its board of directors. Enrique Salem, who served nearly 12 years on the board, has retired, and Karen Dykstra, former CFO of VMware, has been appointed as a new director. Dykstra’s extensive experience in financial strategy is expected to benefit Atlassian’s board. These developments come as Atlassian continues to integrate artificial intelligence into its products, a move that analysts believe could impact revenue clarity. As the company awaits further financial results, these strategic and leadership changes are being closely monitored by investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.