Atlassian Stock Forecast 2023

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    Atlassian Corporation, an Australian software company founded in 2002 and headquartered in Sydney, provides a range of collaboration tools and software development products for teams and businesses.

    Its products are widely used by organizations of all sizes and across various industries to improve team collaboration, enhance project management, and streamline software development processes. Atlassian’s tools are known for their flexibility, scalability, and customization options, making them popular choices for many teams and businesses.

    The company went public on December 10, 2015, and is listed on NASDAQ; Attlassian’s stock is named “TEAM.” Because of the company’s strong market position, consistent revenue growth, and expanding customer base, investors will naturally wonder where its stock price could be heading. That’s where we come in.

    This article is supposed to give you an overview of what Wall Street thinks about the movement of the stock price, along with some financial results projections, key financial data, and potential growth challenges.

    Let’s dive into it…

    key points

    • Atlassian faces challenges from strong competitors in the industry, which can negatively affect its position in the market.
    • Despite demonstrating strengths in areas like gross profit margin and revenue growth, Atlassian’s unprofitability is problematic.
    • The stock is currently overvalued compared to sector peers, highlighting the need for caution among investors and the potential for a downside correction in the future.

    TEAM Stock Forecast for 2023

    Based on Wall Street 20 analyst firms that offer 12-month price forecasts for TEAM, the median target is $175 which suggests a 4.91% decrease from the last recorded price of $184.03. The highest estimate is $420 and the lowest is $130.

    How To Buy Atlassian Stock
    Atlassian Corporation is a leading software company that helps empower teams worldwide to work smarter and more effectively. The firm has created an intuitive suite of collaboration tools and project management software. TEAM has revolutionized how teams communicate, share ideas, and deliver work. Today’s world continues to become more fast-paced and interconnected, with more companies […]

    Moving to the earnings forecast, the business is estimated to generate earnings per share of $0.43 in the next quarter, with a range of $0.38 to $0.49. In the last quarter, its EPS came at $0.54, which suggests a future decrease in earning power. Over the last 12 months, the company has beaten its EPS estimates 50% of the time, while the overall industry had a beat rate of 61.59%.

    Last, when it comes to revenue the company is expected to generate sales of $915 million in the next quarter, ranging from $909.3 million to $937.27 million. In the previous quarter, the company recorded sales of $915.45 million, which suggests a slight decrease in revenue in the near future. Over the past 12 months, it has beaten sales estimates 100% of the time, while the overall industry scored a 61.67% beat rate.

    As you can see, the bearish outlook from Wall Street concerning the stock price seems to be consistent with the forward EPS and revenue figures, which indicate no growth. But a question we still need to answer has to do with what story the recent profitability along with the financial health and valuation of the company has to tell.

    It appears that when it comes to profitability the company has displayed a stronger financial performance in certain areas when compared to its sector peers. Its gross profit margin, calculated over the trailing twelve months (TTM), stands at 81.90%, surpassing the sector median of 49.24%. However, Atlassian’s net income margin for the same period is -18.27%, indicating that its expenses have exceeded its revenue, in contrast to the sector median of 1.97%. That said, Atlassian has achieved a double-digit revenue growth year over year, with a growth rate of 28.93%, outpacing the sector median of 11.72%. Last, the company’s YoY operating cash flow growth rate stands at 10.39%, which is higher than the sector median of 7.04%, albeit not much.

    Now, when it comes to its solvency, things are mixed. The company’s TTM operating loss resulted in a negative interest coverage ratio; it lost $513.7 million in the last 12 months and its interest expense was at $10.7 million. And this is coupled with a high leverage ratio of 1.6 times right now. At the same time, its current assets were 1.3 times its current liabilities, highlighting adequate liquidity with a margin of safety.

    As for its valuation, Atlassian appears to be overvalued compared to its sector peers. The price-to-earnings ratio (P/E) on a non-GAAP basis, projected forward (FWD), is 104.27 for Atlassian, significantly higher than the sector median of 21.57. Similarly, the price-to-sales ratio (P/S) on a forward basis is 13.42 for Atlassian, while the sector median is 2.79. This indicates that investors are valuing Atlassian’s sales at a higher multiple compared to the industry average. Moreover, the price-to-book ratio (P/B) on a trailing twelve-month (TTM) basis is 81.25 for Atlassian, considerably higher than the sector median of 3.05.

    In any case, Atlassian may face some challenges in the future. Surely, the company possesses an intriguing offering through its ITSM division and the rapidly growing Jira Service Suite, which uniquely connects developer and IT teams, as was highlighted during the Morgan Stanley conference. It’s worth noting that the management views this as a distinct competitive advantage in a thriving market. Additionally, Atlassian aims to establish business partnerships with all Fortune 500 companies in the coming years.

    While Atlassian was recognized as a leader in the ITSM segment by Gartner in 2022, it faces a significant hurdle in the form of ServiceNow, which remains the dominant player in this segment. This is one of Atlassian’s prominent challenges as it contends with formidable competitors across all its business ventures, including Asana, Microsoft, and Monday. The intense competition and the greater financial resources of some rivals make it challenging for Atlassian to maintain a competitive advantage right now.


    Atlassian, a leading software company, may be an interesting enterprise, but it faces challenges from strong competitors in its various business ventures.

    While it demonstrates strengths in areas like gross profit margin and revenue growth, its unprofitability raises concerns. Further, Wall Street analysts hold a bearish outlook on the stock price and this looks justified based on the earnings and revenue projections.

    In any case, the biggest issue right now is that the stock is overvalued compared to sector peers, so investors should be cautious about it. There might be a correction toward the downside on the horizon.


    What is the future of Atlassian’s stock?

    We cannot know what the future holds for Atlassian’s stock price, but Wall Street currently believes it will experience a decline of 4.91% in the next 12 months.

    At what price should I buy Atlassian’s stock?

    This is not possible to answer because by the time the stock may become undervalued, changes in the company’s market position or profitability may deem the stock unfit for investment without a substantial risk of capital loss.

    Does Atlassian have debt?

    Yes, its total liabilities come at $3.83 billion and its long-term debt is at $974.9 million.

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