Gold prices steady ahead of Fed decision; weekly weakness noted
On Thursday, Mizuho (NYSE:MFG) Securities adjusted its price target for Atlassian Corporation (NASDAQ:TEAM) shares, reducing it to $325 from the previous $355, while continuing to endorse the stock with an Outperform rating. Currently trading at $209.62 with a market capitalization of $54.92 billion, Atlassian's stock sits well below the broader analyst target range of $230-$420. The revision follows the attendance of Mizuho analysts at the Team 2025 user conference in Anaheim, where Atlassian showcased several new products and services.
At the event, Atlassian revealed two new cloud services: Atlassian Government Cloud, which has been recently announced and is now available in early access, and Atlassian Isolated Cloud, which is expected to be generally available in 2026. Furthermore, the company announced that Rovo, a tool designed to enhance team collaboration, will soon be accessible at no additional charge to all subscribers of Jira, Confluence, and Jira Service Management (JSM).
The Mizuho analyst reported that conversations with Atlassian's partners and customers were generally positive. Although no financial updates were provided during the investor session due to the quiet period, the analyst expressed a continued belief in Atlassian's multi-year growth prospects. This optimism appears well-founded, given the company's impressive 81.82% gross profit margins and robust revenue growth of 23.19% over the last twelve months. This positive outlook includes the company's pricing power and anticipated significant migrations from Data Center to Cloud platforms.
The adjustment in the price target reflects a more cautious valuation approach, taking into account the recent contraction in comparative multiples which is associated with a higher likelihood of an impending recession. According to InvestingPro analysis, Atlassian appears to be trading above its Fair Value, though the platform identifies several positive factors including expected net income growth this year. For deeper insights into Atlassian's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Despite this more conservative price target, Mizuho reaffirmed its confidence in Atlassian's performance potential, reiterating the Outperform rating on the stock.
In other recent news, Atlassian Corporation has been the focus of multiple analyst assessments and adjustments. KeyBanc analysts recently lowered their price target for Atlassian from $365 to $275, while maintaining an Overweight rating, citing insights from the company's annual user conference and potential macroeconomic pressures. UBS also revised its price target for Atlassian, reducing it from $330 to $230 and maintaining a Neutral rating, highlighting budget scrutiny and modest seat expansion rates as influencing factors. Meanwhile, Stephens initiated coverage of Atlassian with an Equal Weight rating and a $255 price target, pointing to the company's broad market reach and strong growth potential as key advantages.
Despite these varied assessments, KeyBanc reaffirmed its previous $365 price target, emphasizing Atlassian's strong performance metrics and potential growth drivers. Analysts have noted Atlassian's extensive database on team organization and its Forge ecosystem as significant competitive advantages. The company's ability to maintain over 20% growth and more than 25% profit before tax margins, even amid challenging economic conditions, has been highlighted. Investors are closely watching Atlassian's upcoming financial disclosures for further insights into its performance and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.