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Investing.com - Truist Securities has lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $230.00 from $275.00 while maintaining its current rating on the stock. The company’s shares currently trade at $171.75, having declined over 45% in the past six months according to InvestingPro data.
The price target reduction follows Atlassian’s fourth-quarter results, which exceeded Truist’s top and bottom-line estimates, driven by improvements in the company’s enterprise sales approach that boosted platform deal momentum. InvestingPro data shows impressive revenue growth of 19.12% and industry-leading gross margins of 82.31%.
Truist noted that Atlassian’s guidance for fiscal year 2026 reflects "similar prudence around macro and execution risk" as seen in its FY25 outlook, resulting in growth projections slightly below consensus expectations.
The company also forecasts lower margins in the coming fiscal year as it increases investments in product innovation and its enterprise sales strategy, according to Truist’s analysis.
Despite the reduced price target, Truist believes Atlassian’s platform "is positioned well to continue benefiting from enterprise platform adoption and AI usage through FY26."
In other recent news, Atlassian Corporation reported its fourth-quarter earnings, showcasing a notable performance with revenue and cloud revenue surpassing expectations by 2.2% and 2.7%, respectively. The company experienced a 22% year-over-year growth in total revenue, exceeding Wall Street’s forecast of 20% growth. Atlassian’s cloud revenue also grew by 26%, outperforming guidance of 23%, and its operating margin surpassed consensus by 230 basis points. Despite these strong results, several analysts have adjusted their stock price targets for Atlassian. Bernstein lowered its target to $296 while maintaining an Outperform rating, citing the company’s solid earnings. TD Cowen adjusted its target to $220, expressing concerns about artificial intelligence impacts on SaaS companies, though it acknowledged Atlassian’s solid results. Mizuho (NYSE:MFG) reduced its target to $235, still maintaining an Outperform rating due to the company’s strong performance in large deals and cloud migration. Raymond (NSE:RYMD) James lowered its target to $250, highlighting the company’s strong cloud business as a key driver. Goldman Sachs adjusted its target to $260, maintaining a Buy rating, as Atlassian’s recent earnings report exceeded several key metrics.
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