Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Goldman Sachs has lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $260 from $305 while maintaining a Buy rating following the company’s recent earnings report. The new target still represents significant upside from the current price of $171, though the stock has faced headwinds with a -45.59% return over the past six months. According to InvestingPro data, analyst targets range from $211 to $480, reflecting varied opinions on the company’s potential.
The software company reported cloud revenue growth of 26%, exceeding guidance of 23%, while total revenue grew 22%, outperforming consensus estimates by 2%. Operating margin also exceeded consensus by 230 basis points, according to Goldman Sachs. InvestingPro data reveals impressive gross profit margins of 82.31%, with overall revenue growth maintaining a strong 19.12% pace. The platform offers 10+ additional financial health indicators for deeper analysis.
Despite these results, Atlassian shares remained flat in after-hours trading as the company’s 18% revenue guidance for fiscal year 2026 raised investor concerns about meeting its 20%+ compound annual growth rate target for FY27. The modest FY26 operating margin deceleration also lowered expectations for outperformance against the company’s 25%+ FY27 operating margin target. While currently showing a Fair financial health score according to InvestingPro’s comprehensive analysis, analysts expect the company to return to profitability this year, with an EPS forecast of $3.59.
Goldman Sachs believes the FY26 guidance is conservative and maintains confidence in Atlassian’s ability to outperform these targets. The firm cites several supporting factors, including momentum in emerging products with 2.3 million AI monthly active users (up from 1.5 million last quarter), strong enterprise-level execution with Premium and Enterprise annual recurring revenue growing over 40% year-over-year, and Data Center to Cloud migrations increasing 60% compared to last year.
The company also reported a record number of deals exceeding $1 million and remaining performance obligations accelerating to 38% growth, addressing concerns about macroeconomic instability.
In other recent news, Atlassian Corporation has been the focus of several notable developments. Moody’s Ratings upgraded Atlassian’s senior unsecured notes to Baa2 from Baa3 and maintained a stable outlook, citing expectations of rapid improvements in the company’s credit profile and strong business execution. Moody’s anticipates Atlassian’s revenues to grow by 20% or more over the next 12 to 24 months, driven by increased cloud subscription revenues. Additionally, Atlassian’s operating profit growth is expected to surpass revenue growth during this period.
In terms of analyst actions, Capital One (NYSE:COF) downgraded Atlassian’s stock from Overweight to Equal-weight, reducing its price target to $211.00 from $241.00. The downgrade was attributed to concerns about competition in the AI space and valuation challenges. Meanwhile, Bernstein SocGen Group has reiterated an Outperform rating with a $310.00 price target, highlighting ongoing investor debate but noting the stock’s attractive pricing. These recent developments provide a snapshot of the current sentiment and expectations surrounding Atlassian Corporation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.