Atlassian Analyst ‘Incrementally Positive’ On Stock Yet Remains On Sidelines: Retail Turns Increasingly Bullish

Atlassian Corp. (TEAM) stock has gained nearly 18% since the collaboration software services and tools provider reported a beat-and-raise quarter. An analyst said Friday he is “incrementally positive” on the stock but opted to stay on the sidelines.

Macquarie analyst Steve Koenig upped his price target for Atlassian stock as the stellar fiscal year second-quarter performance prompted him to revise his estimates for the company upwardly. 

The analyst attributed the second-quarter beat to the conservative guidance approach, which accommodates macro and execution risks. He also noted that the company stuck with its conservative approach in its fiscal year 2025 guidance as new Chief Revenue Officer Brian Duffy took over the sales team. 

Koenig expects Atlassian to maintain its 2025 momentum, citing the stability in the quarterly revenue trends and the 15%-25% data center price increases on contracts renewing after Feb. 11.

The analyst said, “We're incrementally more positive on the potential for continued momentum to set the company up for near-term outperformance and easier FY27 comparisons that don't require acceleration.

He is also encouraged by the company’s ability to derive more value per seat, which will likely offset macro headwinds.

That said, Koenig believes that the multiple now looks stretched. "We could become more constructive if we gain visibility into FY26 (upside) and/or a more attractive entry point for TEAM shares," he added. 

The updated price target of $317 suggests a less than 1% upside from current levels.

Macquarie has a ‘Neutral’ rating on Atlassian stock.

On Stocktwits, retail sentiment toward Atlassian stock turned ‘extremely bullish’ from merely ‘bullish’  a day ago. The message volume remained at ‘normal’ levels.

Atlassian stock ended Friday’s session down 1.48% at $314.28. The stock has gained over 29% so far this year.

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