TEAM Stock On Track For 7-Month High – BofA Says Atlassian Is An ‘AI Beneficiary Rather Than An AI Victim’

• Bank of America said Atlassian has become an "AI beneficiary rather than AI victim" thanks to its Teamwork Graph and improving cloud outlook.
• TEAM stock jumped 28.5% in pre-market trade and was on track for its biggest single-day gain in two months.
• Atlassian reported quarterly earnings of $1.87 per share on $1.77 billion in revenue and projected approximately 13% annual sales growth.

Shares of Atlassian (TEAM) rallied in early-morning trade on Monday, on track to hit a seven-month high, after Bank of America (BofA) upgraded the stock after a fourth-quarter earnings report that beat Wall Street expectations. 

BofA stated that Atlassian was now an “AI beneficiary rather than AI victim” in its note to investors, cited by TheFly. The firm upgraded TEAM stock to ‘Buy’ from ‘Neutral’ and hiked its price target to $175, up from $105. The new target implies a potential upside of 58% from Thursday’s closing price.

TEAM stock gained 28.5% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. The rally put the stock on track to hit levels last seen in January. 

If the premarket gains hold, TEAM stock could post its biggest single-day gain in two months, surpassing its previous high of more than 29% set in May, according to Koyfin data.

Why TEAM Stock Received An Upgrade

BofA attributed the upgrade to a “strong finish” to the fiscal year of 2026 with fourth quarter (Q4) results and a better-than-expected Cloud growth outlook for fiscal 2027, "putting to rest revenue growth concerns." The firm said investors are underestimating the value of Atlassian's workflow and collaboration data. It added that there is growing evidence that the company’s Teamwork Graph is becoming a differentiated AI asset. 

Atlassian, the maker of workplace software programs Trello, Jira, and Confluence, reported Q4 earnings of $1.87 a share and revenue of $1.77 billion, up 28% from a year ago. Analysts had expected earnings of $1.50 a share and revenue of $1.66 billion. 

The company also forecast 13% annual sales growth, with CEO Mike Cannon-Brookes pegging a potential buy of up to $250 million of the company’s shares.

How Is Retail Feeling About TEAM Stock?

On Stocktwits, retail sentiment around TEAM stock rose to ‘extremely bullish’ from ‘bullish’ territory over the past day, and chatter rose to ‘extremely high’ from ‘neutral’ levels. Platform data showed a 2,000% jump in message volume.

One retail trader on Stocktwits said that Atlassian’s Q4 results put the software sector “back on the radar,” applauding the firm’s forward-looking guidance.

TEAM stock has lost around 32% this year, not accounting for Friday’s pre-market rally, and is down by over 35% in the last 12 months. 

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