Atlassian upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc upgraded Atlassian (TEAM) to Overweight from Sector Weight with a $260 price target Following the “strong” fiscal Q1 results, the firm feels better that Atlassian’s guidance is appropriately set to facilitate a more consistent “beat/raise cadence going forward.” Stable paid seat expansion over the past two quarters, coupled with a risk-adjusted guidance framework that implies a deteriorating macro environment, and data points from KeyBanc’s recent surveys that point to some optimism in IT budgets in 2025, creates a positive setup for the shares, the analyst tells investors in a research note. The firm sees several catalysts to Atlassian accelerating growth beyond fiscal 2025.