
Atlassian (TEAM) Stock Forecast & Price Target
Atlassian (TEAM) Analyst Ratings
Bulls say
Atlassian showcases a positive financial outlook with an increase in total revenue guidance by 200 basis points to a range of 18.5-19.0%, driven by strong growth in its Data Center segment, which experienced a 32% year-over-year increase in revenue. The company also reported a significant 21% year-over-year growth in free cash flow, amounting to $343 million, highlighting efficient cash management alongside enhanced profitability. Furthermore, the non-GAAP operating margin is projected to rise to 23.5% for FY25, reflecting improved operating leverage and higher gross margins, particularly in the Cloud segment.
Bears say
Atlassian's stock outlook appears negative due to several key factors, including a potential decline in its premium enterprise value/revenue multiple amidst changing market sentiment, coupled with a faster-than-anticipated deceleration in subscription revenue growth. The company is also facing increasing competitive pressures from major players like Microsoft and ServiceNow, as well as challenges related to pricing power and execution issues in attracting new customers and expanding within its existing base. Additionally, cloud growth is expected to slow down in the latter half of FY25, creating further concern regarding sustained revenue uplift and overall company performance.
This aggregate rating is based on analysts' research of Atlassian and is not a guaranteed prediction by Public.com or investment advice.
Atlassian (TEAM) Analyst Forecast & Price Prediction
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