Atlassian's (TEAM) fiscal Q4 data center upside was primarily driven by upfront end-of-life revenue recognition, while cloud acceleration reflects robust seat expansion amid enterprise adoption and growing usage of its Rovo offerings, Oppenheimer said in a Thursday research report.
The robust Q4 results reinforce confidence in the company's ability to monetize client AI usage, with potential to deliver more upside by showcasing the relevance of its Teamwork Graph, according to the note.
Analysts noted that gross margin outlook calls for a decline, while execution risk remains for evolving data center migration, but a robust quarter makes a case for why AI is a tailwind for its business.
The brokerage said it reiterated its outperform rating on the stock and boosted its price target to $200 per share from $110.
Price: $148.15, Change: $+37.98, Percent Change: +34.47%