Analysts Endorse Atlassian’s Cloud-First Strategy With Upbeat Targets
More upfront cloud contracts are expected to lift recognized revenue with margin improvement beginning in fiscal 2026.
Overview
- Morgan Stanley maintained a Buy rating on Atlassian with a $320 price target, highlighting the company’s cloud-first pivot and plans to end Data Center offerings by March 2029.
- The firm expects recognized revenue to accelerate and operating margins to improve starting in fiscal 2026 due to increased upfront cloud contract recognition.
- Morgan Stanley projects mid-teens growth for Atlassian’s Cloud segment beyond fiscal 2026.
- Atlassian introduced the Ascend program to help enterprise customers migrate from Data Center to Cloud and to manage transition risk.
- Guggenheim initiated coverage with a Buy rating and a $225 target, arguing AI will not derail Atlassian’s user growth and forecasting strong cloud and free-cash-flow performance.