Bank of America raises Atlassian to Buy with a $175 target, citing strong AI monetization potential and Cloud revenue growth.
Atlassian shares surged 30% in early trading Friday after Bank of America upgraded the stock to Buy from Neutral and lifted its price target to $175 from $105. The upgrade follows strong fourth-quarter results and an optimistic fiscal 2027 outlook, highlighting AI-driven growth opportunities in enterprise workflows.
The company’s Cloud revenue growth outlook of 25.5% for FY27 stood out, while Data Center revenue is expected to decline but remains less critical to long-term projections. Analysts emphasized Atlassian’s collaboration data as a key advantage for AI adoption, positioning it favorably amid accelerating enterprise AI trends.
Oppenheimer noted the focus on Cloud growth and AI adoption as central to the bullish thesis, alongside a rise in large-record deals and Rovo AI traction.