BofA Initiates Coverage on Atlassian (TEAM) With Neutral Rating, $200 Price Target

Atlassian Corporation (NASDAQ:TEAM) is one of the Buzzing AI Stocks on Wall Street. On September 23, BofA Securities analyst Koji Ikeda initiates coverage on the stock with a Neutral rating and a price target of $200.00.

The analysts told investors in a research note that they are optimistic that Atlassian will be able to capture a share of the $58 billion collaboration and project management market driven by its strong roots as a centralized planning tool, broad platform, and 300,000 plus customer base.

The management is targeting 20% revenue growth through 2027, but recent moves such as end of sales support for its Data Center offering and two large acquisitions create uncertainty regarding its growth profile. The firm believes that the risk/reward is balanced until there is more clarity.

“We initiate coverage of work management vendor Atlassian (TEAM) with a Neutral rating and $200 PO. We believe Atlassian is positioned to capture share of the $58bn billion collaboration & project management market, given: (1) strong roots as a centralized planning tool; (2) broad platform; and (3) installed base of 300K+ customers. Thus, we are positive on its long-term growth and FCF generation potential. Mgmt believes it can deliver 20%+ total revenue growth though FY27, which is attractive at first glance. However, we believe two recent updates, accelerating the end of sales and support for its Data Center offering, and two large acquisitions, could make it more difficult for the company to show what its durable long-term revenue growth profile is. We think this is what matters most. And until there is more clarity, we believe the risk/reward is balanced.”

Atlassian Corporation (NASDAQ:TEAM) is a global software company that designs, develops, licenses, and maintains various software products worldwide.

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