Core Viewpoint - Atlassian Corporation (NASDAQ:TEAM) is considered one of the most oversold stocks on NASDAQ, with various analysts adjusting their price targets while maintaining positive ratings, indicating a belief in the company's solid fundamentals despite sector challenges [1][2][3]. Group 1: Price Target Adjustments - Citi adjusted the price target for Atlassian to $160 from $210, citing "sector turmoil" but maintaining a Buy rating due to sound fundamentals [1]. - Morgan Stanley revised the price target to $290 from $320, keeping an Overweight rating, noting no signs of AI disruption in fiscal Q2 and highlighting positive momentum in Atlassian's AI initiatives [2]. - Bernstein also lowered the price target to $290 from $304 while maintaining an Outperform rating, indicating a good fiscal Q2 performance but acknowledging near-term operational complexities related to GenAI concerns [3]. Group 2: Company Overview - Atlassian Corporation specializes in team collaboration and productivity software, offering products such as Jira Software, Confluence, Jira Service Management, and Loom [4].

Atlassian Corp (NASDAQ:TEAM) is one of the 13 Best Revenue Growth Stocks to Buy Right Now. On February 2, Canaccord Genuity analyst David Hynes maintained a Buy rating on Atlassian (NASDAQ:TEAM) with a price target of $230. Zeroing in on a disconnect between Atlassian’s current valuation and its fundamentals, the analyst said the company’s stock price is down due to sector-wide multiple compression and AI-related concerns, despite its business performance, resilient growth, and improving margins. Hynes f ...

Financial Data and Key Metrics Changes - Atlassian closed Q2 with an annual run rate revenue surpassing $6 billion, achieving its first-ever $1 billion cloud revenue quarter, which represents a 26% year-over-year increase [5] - Remaining Performance Obligations (RPO) grew 44% year-over-year to $3.8 billion, indicating strong future revenue visibility [5] Business Line Data and Key Metrics Changes - The cloud revenue segment saw significant growth, contributing to the overall revenue increase, while the Data Center (DC) segment is expected to decline due to tough comparisons [31][30] - The Teamwork Collection, which includes AI capabilities, has seen over 1 million seats sold in under nine months, indicating strong adoption and demand [22] Market Data and Key Metrics Changes - Atlassian reported a net revenue retention (NRR) rate of over 120%, reflecting strong customer loyalty and expansion [19] - The company noted that customers using AI code generation tools experienced a 5% increase in task creation and monthly active users compared to those not using these tools [6][60] Company Strategy and Development Direction - Atlassian is focusing on enterprise, AI, and system-of-work transformations, positioning itself as a strategic partner for large enterprises [5][9] - The company is committed to enhancing its AI capabilities and integrating them into customer workflows, which is seen as a key driver for future growth [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, emphasizing the importance of AI in driving customer engagement and operational efficiency [9][35] - Despite market noise and concerns, management believes that Atlassian is well-positioned to help customers navigate challenges and improve their business processes [15][16] Other Important Information - Atlassian's service collection is growing rapidly, with over 65,000 customers and significant year-over-year growth in the enterprise segment [67] - The company is recognized as a leader in enterprise service management, with a strong focus on integrating AI into service workflows [69] Q&A Session Summary Question: Changes in customer conversations and AI's impact - Management noted that customer conversations have become more strategic, with clients seeking partnerships to leverage AI capabilities, which are driving upgrades to the Teamwork Collection [12][13] Question: Pricing evolution and customer preferences - Management indicated that current pricing models are delivering value, and customers prefer predictable, seat-based pricing, which aligns with their needs [20][21] Question: Competitive landscape and AI tools - Management acknowledged the emergence of new AI tools but emphasized the unique value of Atlassian's offerings and its integration capabilities with various platforms [25][27] Question: Cloud migration impact on revenue - Management reported healthy cloud migrations contributing mid- to high-single-digit impacts to cloud revenue growth rates [49] Question: Seat expansion dynamics - Management highlighted broad-based seat expansion across both tech and non-tech users, particularly in business functions, indicating strong demand for Atlassian's products [52][56] Question: JSM growth and competitive dynamics - Management confirmed that the service collection is performing well, with significant growth in HR and finance sectors, and emphasized the importance of integrating AI into service workflows [68][69]

Core Viewpoint - Atlassian Corporation (NASDAQ:TEAM) is identified as one of the tech stocks with significant upside potential despite recent price target reductions from Wall Street analysts [1][2]. Group 1: Price Target Adjustments - UBS analyst Karl Kierstead reduced the price target for Atlassian shares from $185 to $145, maintaining a Hold rating, which indicates a potential upside of 21.26% from current levels [1]. - Bank of America analyst Koji Ikeda also lowered the price target from $200 to $170 while reaffirming a Hold rating, suggesting a 26% upside from current levels [2]. Group 2: Market Sentiment and Risks - The downward adjustments in price targets reflect concerns over waning investor sentiment in the software sector, particularly due to fears surrounding AI disruption [2]. - The adjustments are attributed to elevated risks associated with AI-related concerns and valuation multiple compression across the software industry [2]. Group 3: Company Overview - Atlassian Corporation is a provider of collaboration software, with a product portfolio that includes Jira, Confluence, Loom, Jira Service Management, and Rovo [3]. - The company was incorporated in 2002 and is headquartered in Sydney, Australia [3].

Group 1 - Atlassian Corporation (NASDAQ:TEAM) is considered a promising stock within the QQQ index according to hedge funds, with a recent price target adjustment from TD Cowen from $205 to $175 while maintaining a Hold rating [1] - The company shows positive indicators such as momentum in Jira Service Management, cloud migrations, improved packaging options, and strong sales hiring [1] - Despite these positive signs, Atlassian has struggled to gain traction with its AI solutions, raising concerns about medium-term seat growth pressure related to AI [2] Group 2 - Investors are worried about the potential impact of AI-related growth concerns on Atlassian's future development, even though its valuation appears attractive [2] - The company offers a range of team collaboration and productivity software products, including Jira Software, Confluence, Jira Service Management, and Loom [3]

Group 1 - Atlassian Corporation (NASDAQ:TEAM) is being closely monitored by analysts as a notable AI stock, with BTIG analyst Allan Verkhovski maintaining a "Buy" rating and a price target of $220.00 [1] - The company has announced a 15% increase in list pricing for existing Data Center subscriptions for Jira, Confluence, and Jira Service Management, effective February 17, 2026 [2] - This price increase is significantly lower than the 25% hike from the previous year, attributed to Atlassian's plan to phase out its Data Center deployment by March 28, 2029, and transition customers to Cloud services through the Ascend program [3] Group 2 - Positive customer feedback on the Ascend program has led to higher-than-expected migrations, prompting Atlassian to raise its FY26 Cloud revenue growth outlook to reflect a mid-to-high single-digit contribution from these migrations, up from a prior mid-single-digit expectation [4] - The smaller price increase for Data Center subscriptions indicates successful traction among customers migrating to Cloud, reducing the necessity for aggressive pricing strategies [4]

Core Viewpoint - Atlassian Corporation (NASDAQ:TEAM) is identified as a strong investment opportunity with over 50% upside potential, supported by a Buy rating and a price target of $235 set by Mizuho Securities analyst Gregg Moskowitz [1]. Group 1: Company Overview - Atlassian Corporation specializes in team collaboration and productivity software, offering products such as Jira Software, Confluence, Jira Service Management, and Loom [3]. Group 2: Recent Developments - On September 18, Atlassian Corporation announced a definitive agreement to acquire DX, a leader in engineering intelligence, aiming to enhance enterprises' understanding of AI investments and improve engineering team productivity [2].

Core Insights - Atlassian Corporation (NASDAQ:TEAM) is currently highlighted as a notable AI stock, with an Outperform rating and a price target of $296.00 from Bernstein SocGen Group analyst Peter Weed following two recent acquisitions expected to close by year-end [1][2]. Acquisition Details - Atlassian is acquiring Browser Co for $610 million and DX for $1 billion, which are seen as complementary to its Cloud Platform [2]. - The company has a history of successfully expanding its product lineup through acquisitions, with optimism regarding the potential upside of these new deals despite the possibility of varying immediate returns [2][3]. Product Development Strategy - Atlassian's strategy includes acquiring popular third-party tools to enhance its platform, similar to past successes like the Jira Service Management product, which emerged from multiple smaller acquisitions [3]. - The company is increasing the pace of adding new features and products, indicating a proactive approach to maintaining competitiveness in the software market [3].

Industry Insights - Companies are increasingly investing in agentic AI without fully understanding its capabilities, leading to potential waste of future investments [1] - A significant portion of organizations, only 14%, have fully adopted agentic AI technology, indicating a gap in readiness for its demands [3][4] - The current trend shows a rebranding of generative AI as agentic AI, creating confusion in the market [2] Company Highlights - Atlassian Corporation (NASDAQ:TEAM) is focusing on acquisitions to enhance its Cloud Platform, with two recent acquisitions totaling $1.61 billion expected to close by year-end [7][8] - Accenture plc (NYSE:ACN) is anticipated to report steady performance in its upcoming quarterly results, with a revenue estimate of $17.4 billion reflecting approximately 5.5% year-over-year growth [10][11] - Micron Technology, Inc. (NASDAQ:MU) is benefiting from increased demand for AI and tight supply discipline in the memory industry, leading to a price target increase to $180 [12][13][15] - Adobe Inc. (NASDAQ:ADBE) has faced challenges in AI monetization, leading to a downgrade from Overweight to Equalweight, with a revised price target of $450 [17][18][20]

Group 1 - Atlassian Corporation (NASDAQ:TEAM) is recognized as one of the best NASDAQ stocks to buy, with significant upside potential, supported by a Buy rating from Morgan Stanley analyst Keith Weiss and a price target of $320 [1] - The company's transition to a cloud-first model is expected to enhance revenue and operating margins starting in fiscal 2026, as it plans to phase out Data Center products by March 2029 [2] - Strong growth in the Cloud segment is anticipated, with projections of mid-teens growth beyond fiscal 2026, aided by the launch of the Atlassian Ascend program to facilitate customer migration from Data Center to Cloud [3] Group 2 - Atlassian Corporation specializes in software development for team collaboration and project management, with key products including Jira, Confluence, and Jira Service Management [4]