Atlassian Stock Ticks Up In Premarket After Another Analyst Price Target Hike: Retail Mood Lifts

Wall Street continues to be optimistic about San Francisco, California-based Atlassian Corp.(TEAM), and the sell-side’s optimism has rubbed off on retail investors as well.

The company provides collaboration software, services, and tools such as Jira, Confluence, Trello, and Loom.

Jefferies analysts upped the price target for Atlassian stock to $325 from $300, TheFly reported, suggesting over 22% upside potential from current levels. The brokerage has a ‘Buy’ rating on the stock.

Atlassian stock has gained over 9% so far in January, following a modest 2.3% rise in 2024

Jefferies attributed the price target hike to its channel checks, which showed that partners finished above plan, thanks to some very large enterprise renewals, momentum in cloud migration, and a year-end budget flush. The channel checks along with more significant price increases, gave the firm conviction that Atlassian will likely beat the fiscal year 2025 second-quarter guidance for 2.5% cloud growth and 2.75% data center growth.

Earlier this month, BMO Capital Markets upgraded the stock to ‘Outperform’ from ‘Market Perform’ and raised the price target to $292 from $255. The firm said its confidence in the company sustaining 20% year-over-year (YoY) earnings growth has increased.

Truist also upgraded the stock to ‘Buy’ from ‘Hold,’ with a $300 price target, citing Atlassian’s unique artificial intelligence (AI) opportunity and the potential for margin upside.

Oppenheimer recently named the company as its top pick due to multiple catalysts and upped the price target to $300 from $270. Piper Sandler increased the stock’s price target to $310 from $265.

In early November, the U.S.-Australian software company reported above-consensus first-quarter results and issued upbeat guidance for the second quarter and the full year.

Atlassian is scheduled to report its second-quarter results after the market close on Thursday, Jan. 30.

The consensus estimates call for non-GAAP earnings per share (EPS) of $0.75 and revenue of $1.24 billion, versus last year’s $0.73 and $1.06 billion, respectively.

TEAM sentiment and message volume January 24, 2025, premarket as of 6:51 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Atlassian stock improved to ‘bullish’ (56/100) from ‘neutral’ a day ago. Message volume perked up to ‘high’ levels.

In premarket trading, Atlassian stock rose 0.13% to $266.05.

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