Second Quarter Performance Drives Optimism Around Atlassian (TEAM)

Atlassian Corporation (NASDAQ:TEAM) is one of the 12 oversold software stocks to invest in.

On February 6, Wells Fargo analyst Ryan MacWilliams reaffirmed an Overweight rating for Atlassian Corporation (NASDAQ:TEAM). He lowered the price target on the stock from $216 to $155, leading to an adjusted upside potential of nearly 84%.

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Despite lower valuations, SaaS companies continue to remain under pressure due to skeptical investors. Atlassian’s results for the recent quarter were solid, although the analyst did note a minor second-quarter cloud revenue beat and a soft Q3 cloud guidance.

On February 6, Ittai Kidron from Oppenheimer lowered the price target on Atlassian Corporation (NASDAQ:TEAM) from $275 to $150. The analyst maintained an Outperform rating on the stock, which still offers close to 78% upside following the downward revision.

Kidron appreciated the company’s second-quarter results, which exceeded expectations across all metrics and supported its long-term growth targets. While near-term challenges persist, the analyst views the current valuation as attractive over the long term.

Atlassian Corporation (NASDAQ:TEAM) delivers collaboration, project management, and IT service tools that help enterprises in integrating their teams through a subscription-based model. Some of its offerings include Jira, Confluence, Trello, and Loom. The company covers a broad set of solutions such as project management, document sharing, video communication tools, service management, and Chat & Agent capabilities.

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Disclosure: None. This article is originally published at Insider Monkey.