BofA Initiates Atlassian Coverage At Neutral With $200 Price Target

Core Viewpoint - BofA Securities initiated coverage of Atlassian Corporation with a Neutral rating and a price target of $200, emphasizing the company's strong position in the collaboration software market while highlighting uncertainties regarding its long-term growth profile [1] Group 1: Market Positioning - Atlassian is well positioned to capture a share of the $58 billion project management and collaboration market, supported by its broad platform, central planning tools, and an installed base of over 300,000 customers [2] - Management has projected revenue growth of 20% or more through fiscal 2027 [2] Group 2: Growth Concerns - BofA expressed concerns over Atlassian's decision to accelerate the end of sales and support for its Data Center offering, which may impact its growth trajectory [3] - Risks associated with two large acquisitions have also been noted, complicating the assessment of the company's durable growth [3] - These developments have led to a balanced risk and reward scenario at current levels [3]