Atlassian (NASDAQ:TEAM) has been analyzed by 11 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 5 | 3 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 3 | 2 | 3 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $224.64, with a high estimate of $250.00 and a low estimate of $200.00. A 9.6% drop is evident in the current average compared to the previous average price target of $248.50.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Atlassian is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Connor Murphy | Capital One | Announces | Overweight | $211.00 | - |
| Rob Owens | Piper Sandler | Raises | Overweight | $225.00 | $200.00 |
| Michael Turrin | Wells Fargo | Lowers | Overweight | $250.00 | $285.00 |
| Derrick Wood | TD Cowen | Lowers | Hold | $210.00 | $220.00 |
| Ittai Kidron | Oppenheimer | Lowers | Outperform | $250.00 | $300.00 |
| Joel Fishbein | Truist Securities | Lowers | Hold | $200.00 | $220.00 |
| Rob Owens | Piper Sandler | Lowers | Neutral | $200.00 | $225.00 |
| David Hynes | Canaccord Genuity | Lowers | Buy | $230.00 | $260.00 |
| Gregg Moskowitz | Mizuho | Lowers | Buy | $225.00 | $240.00 |
| Rob Oliver | Baird | Lowers | Outperform | $230.00 | $270.00 |
| Gregg Moskowitz | Mizuho | Lowers | Buy | $240.00 | $265.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Atlassian. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Atlassian compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Atlassian's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of Atlassian's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Atlassian analyst ratings.
Delving into Atlassian's Background
Atlassian produces software that helps teams work together more efficiently and effectively. The company provides project planning and management software, collaboration tools, and IT help desk solutions. The company operates in four segments: subscriptions (term licenses and cloud agreements), maintenance (annual maintenance contracts that provide support and periodic updates and are generally attached to perpetual license sales), perpetual license (upfront sale for indefinite usage of the software), and other (training, strategic consulting, and revenue from the Atlassian Marketplace app store). Atlassian was founded in 2002 and is headquartered in Sydney.
Breaking Down Atlassian's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Atlassian displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 29.89%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Atlassian's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.07%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Atlassian's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.25%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.27%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Atlassian's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.1, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
How Are Analyst Ratings Determined?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.