Atlassian just upgraded at Piper Sandler, here’s why

Piper Sandler upgraded Atlassian to Overweight from Neutral with a price target of $225, up from $200. With the shares sliding to eight-times estimated 2025 revenue, Atlassian’s risk/reward has turned favorable, the analyst tells investors in a research note. For a company that should end this fiscal year at a “Rule of 52” with line of sight into a sustainable “Rule of 50” profile going forward, the current valuation does not reflect “this durable fundamental profile,” contends the firm. Piper thinks enterprise customers “will power the next wave of cloud migrations, lending to better cloud growth dynamics.”