Piper Sandler raises Atlassian stock price target to $365

On Friday, Piper Sandler analyst Rob Owens increased the price target for Atlassian Corporation (NASDAQ:TEAM) to $365 from the previous target of $310, while maintaining an Overweight rating on the stock. The adjustment followed Atlassian’s reported results, which exceeded expectations, particularly noting strong second-quarter cloud growth. According to InvestingPro data, analyst targets for the $69.52B company now range from $245 to $420, reflecting diverse views on the stock’s potential.

The company’s management has highlighted successes at the enterprise level and increased traction with artificial intelligence (AI). As a result of the robust performance, full-year guidance was revised upwards, with cloud revenue now projected to grow by 26.5%. This builds on the company’s impressive 23.19% revenue growth and robust gross profit margin of 81.82% in the last twelve months. Owens expressed optimism about the results and the company’s outlook, citing signs of macroeconomic stabilization and maintaining confidence in the risk/reward profile of Atlassian’s shares.

Atlassian’s recent performance was marked by a consistent increase in seat count during the fiscal second quarter and significant year-over-year growth in its AI offerings. The company’s higher-tiered products have seen a 40% increase in adoption, driven by the enhanced AI capabilities. This strong execution, alongside stabilizing macro pressures, was a key factor in the analyst’s reaffirmed confidence in Atlassian as a top stock pick.

The analyst’s commentary underscored the company’s success in executing its cloud strategy and leveraging AI to bolster its product offerings. InvestingPro analysis indicates the stock is currently trading above its Fair Value, though it maintains a "GOOD" overall financial health score. As a result of these positive indicators, the analyst reiterated an Overweight rating on Atlassian stock and raised the price target to reflect the company’s upward trajectory and potential for continued growth. For deeper insights into Atlassian’s valuation and 10+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Atlassian Corporation has been the focus of several analyst upgrades following impressive financial performance. TD Cowen analyst Derrick Wood increased the price target on Atlassian shares to $320, maintaining a hold rating, after the company reported a second-quarter growth of 21%. This performance exceeded Wall Street’s expectations and was attributed to stability in the macroeconomic environment, particularly in the small and medium-sized business markets.

KeyBanc raised Atlassian’s stock target to $365, maintaining an Overweight rating, citing the company’s strong cloud growth. Bernstein analysts also increased the stock target to $325 after Atlassian’s second-quarter fiscal year 2025 earnings surpassed expectations with significant revenue growth. Cantor Fitzgerald adjusted the stock target to $304, maintaining a neutral rating, reflecting Atlassian’s strong performance in the second fiscal quarter of 2025.

Scotiabank (TSX:BNS) updated the stock target to $330, observing impressive growth with revenue increasing 23.19% over the last twelve months. Mizuho (NYSE:MFG) analysts, expressing confidence in Atlassian’s multi-year growth potential, lifted the stock target to $355. These recent developments suggest a positive financial trajectory for Atlassian, with a focus on cloud services and AI advancements.

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