Atlassian: Now, It's Finally Time To Buy (Rating Upgrade)

Gary Alexander
31.49K Followers

Summary

  • Atlassian's YTD declines intensified after the company released its FY25 outlook calling for 16% growth, versus Street expectations for 18% growth.
  • Still, the sharp selloff has rendered the stock cheap even against lowered expectations.
  • The stock has reached rough valuation parity with Salesforce and Workday, against which it used to trade at a large premium.
  • Upgrading Atlassian to a buy as the company continues to roll out its AI workflow tools and waits for a pending FedRAMP approval.

Atlassian headquarters in Silicon Valley

Sundry Photography

It's often frightening when a once-vaunted growth stock gets converted into a value play. Rather than signaling a complete and total loss of momentum, however, I tend to view many of these as buying opportunities, especially if cash flow is increasing

This article was written by

31.49K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TEAM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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