Market Overview

Bank Of America Sees Buying Opportunity In Atlassian

Share:
Bank Of America Sees Buying Opportunity In Atlassian

Atlassian Corporation PLC (NASDAQ: TEAM) doesn't need to “perform heroics” to achieve a $10 billion revenue scale by fiscal 2027-2029, with Jira sustaining 30% growth and the company using tuck-in mergers and acquisitions to augment its portfolio in the large and fragmented DevOps market, according to Bank of America.

The Analyst

BofA’s Nikolay Beliov upgraded Atlassian from Neutral to Buy, keeping the price target at $135.

The Thesis

Recent pressure on high-growth software stocks represents a buying opportunity for Atlassian’s shares, Beliov said.

The analyst mentioned a few reasons for recommending the company’s stock. Against a macro slowdown, Atlassian’s model will work better than traditional models, given that the company has “a low-cost/pricing-power, high-quality, low-friction, diversified business model,” Beliov wrote.

See Also: Atlassian Analyst Confident In Software Company's Growth After Q1 Print

He added that Atlassian has a best-in-class durable business model, which is appealing in a low interest environment.

The analyst noted Jira is in its initial stages and the market potential is large. He added that although there’s been a slight delay in transitioning the Server install base to subscription, eventually the company could generate more than $500 million in maintenance revenues from this.

Price Action

Shares of Atlassian rose 3% to $117.82 at time of publishing on Monday.

Latest Ratings for TEAM

DateFirmActionFromTo
Oct 2019UpgradesNeutralBuy
Oct 2019Initiates Coverage OnBuy
Jul 2019MaintainsOutperform

View More Analyst Ratings for TEAM
View the Latest Analyst Ratings

Posted-In: Bank of America Kira Nikolay BeliovAnalyst Color Upgrades Analyst Ratings

 

Related Articles (TEAM)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
REALDA DavidsonInitiates Coverage On22.0
RVLVDA DavidsonInitiates Coverage On19.0
SFIXDA DavidsonInitiates Coverage On27.0
CONNKeyBancDowngrades
PENNJP MorganMaintains29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Virgin Galactic Execs Talk Long-Term Outlook After IPO Debut

Why This Analyst Sees Care.com Fetching Up To $16/Share In Potential Sale