Piper Sandler reiterates Atlassian stock rating, maintains $300 price target

Investing.com - Piper Sandler has reiterated its Overweight rating for Atlassian Corporation (NASDAQ:TEAM) while maintaining its price target of $300.00, representing nearly 87% upside from the current price of $160.67.

The research firm highlighted Atlassian’s strong start to the new fiscal year, noting a slight acceleration in cloud growth driven by better-than-expected customer migrations from on-premise solutions to cloud-based offerings. This aligns with the company’s impressive 19.7% revenue growth over the last twelve months.

Piper Sandler pointed out that Atlassian has adjusted its guidance to reflect changes in data center revenue recognition and the accelerated pace of cloud migrations, which resulted in raised cloud growth projections.

The firm expressed confidence that these adjustments position Atlassian for potential further upside in the coming quarters.

Piper Sandler also emphasized that Atlassian’s current valuation of approximately seven times enterprise value to calendar year 2026 estimated revenue remains "materially disconnected" from where the firm believes shares should be trading, maintaining TEAM as a "top idea" in its coverage. Despite this optimism, InvestingPro data shows the stock has declined 29.6% over the past six months. InvestingPro’s Fair Value assessment and additional financial metrics are available in the comprehensive Pro Research Report, offering deeper insights into Atlassian’s true valuation potential.

In other recent news, Atlassian Corporation reported its fiscal first-quarter 2026 earnings, surpassing analysts’ expectations with an earnings per share of $1.04 compared to the forecasted $0.84. The company’s revenue also exceeded projections, reaching $1.43 billion against an anticipated $1.4 billion. Mizuho responded by raising its price target for Atlassian to $245, maintaining an Outperform rating, citing strong cloud growth and a 21% year-over-year revenue increase. This growth included a benefit from Data Center end-of-life revenue recognition. Meanwhile, Goldman Sachs reiterated its Buy rating with a $260 price target, noting the positive impact of the Data Center transition on revenue and operating margins. Guggenheim also maintained its Buy rating and $225 price target, highlighting a 26% growth in Cloud services, driven by paid seat expansions and cross-selling initiatives. These developments reflect a positive outlook from analysts, supported by Atlassian’s robust performance in the cloud sector.

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