In the latest update on Tuesday, UBS maintained a Neutral rating on Atlassian (NASDAQ:TEAM) Corporation (NASDAQ:TEAM), forecasting a 16.43% surge in the stock price to a one-year target of $229.90. This projection is underpinned by the software company's robust financials, as reported by Fintel.
The strong financial outlook is indicated by a projected revenue of $4,427 million and non-GAAP EPS of 1.99. This expected uptick in stock price and solid financial performance have been attracting institutional investors, leading to an increase in institutional ownership.
According to InvestingPro data, Atlassian Corporation has a market cap of $50.82 billion, and its revenue for the last twelve months (LTM2023.Q4) stands at $3534.65 million, with a growth rate of 26.11%. The company also boasts an impressive gross profit margin of 82.33%. However, it's worth noting that Atlassian has been operating with a negative EBITDA, which stands at -$187.41 million for the same period.
The market sentiment appears to be bearish as reflected by the put/call ratio of 1.10. This ratio is typically used as an indicator of investor sentiment, with a value greater than 1 suggesting bearishness.
Among the major stakeholders in Atlassian are Price T Rowe Associates with 4.68% ownership, Wcm Investment Management holding 3.69%, and Baillie Gifford owning 2.86%. These institutional investors' interest in Atlassian could be seen as a vote of confidence in the company's future prospects, despite the overall bearish sentiment.
InvestingPro Tips suggest that Atlassian's earnings per share have been consistently increasing, and 18 analysts have revised their earnings upwards for the upcoming period. Nonetheless, it's important to note that the company's revenue growth has been slowing down recently, and the stockholders receive poor returns on book equity. The company operates with a moderate level of debt and has not been profitable over the last twelve months. Despite these challenges, analysts predict the company will be profitable this year.
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