Atlassian's (TEAM) robust fiscal Q4 results alleviated revenue growth concerns as Teamwork Graph's influence on enterprise buying decisions could likely support further cloud revenue upside, BofA Securities said in a Friday research report.
Investors are overlooking Atlassian's efforts to build a self-reinforcing AI flywheel, as well as underestimating the potential of the company's workflow and collaboration data despite Atlassian emerging as an AI beneficiary, the firm said.
Teamwork Graph access should make the company's Rovo offerings or third-party AI tools more effective while lowering cost and complexity, according to the note.
The brokerage said it upgraded the stock to buy from neutral and boosted its price target to $175 per share from $105.
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