Atlassian’s Strong Potential and Attractive Valuation Reinforce Buy Rating Despite Lowered Target Price
Keith Bachman maintains a Buy rating on Atlassian, citing its attractive valuation and potential for strong quarterly reports to boost share prices. Despite a slowdown in software developer hiring, he anticipates modestly exceeding top-line metrics. Key strengths include Atlassian's product suite and innovative pricing strategy, leading to a favorable risk/reward setup. The target price was lowered from $200 to $190 due to concerns over developer seat growth. KeyBanc also supports a Buy rating with a $210 target price.
Keith Bachman has given his Buy rating due to a combination of factors including Atlassian’s attractive valuation and the potential for successive strong quarterly reports to drive share prices higher. Despite a slight slowdown in software developer hiring, which is used as a proxy for seat growth, Bachman expects Atlassian to modestly exceed top-line metrics in the upcoming quarter.
Bachman also highlights Atlassian’s compelling product suite and innovative distribution and pricing strategy as key strengths. These factors contribute to a favorable risk/reward setup, reinforcing the Buy rating despite the lowered target price from $200 to $190 due to investor concerns over developer seat growth.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $210.00 price target.
