Analyst Ryan MacWilliams upgraded the Australian-American software company, which develops and maintains software and provisions software hosting services, to overweight from equal weight.
He raised his price target by $40 to $275, which implies 34.3% upside from Wednesday's close.
In early February, the company beat second-quarter earnings and revenue estimates and gave positive fiscal 2024 guidance concerning its cloud and data center revenue growth.
He indicated expectations for roughly 80% to 90% of the company's data center customers to migrate to cloud within the next three years.
The analyst's upside case assumes roughly 28% revenue growth in 2024, which he thinks could happen if Atlassian continues to invest in its in-house revenue generators or pursues external portfolio additions.
Persons:
Ryan MacWilliams, MacWilliams, Atlassian
Organizations:
Barclays, TEAM
Locations:
Atlassian, American, 2H24