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We came across a bullish thesis on Atlassian Corporation (TEAM) on Substack by Deep Value Returns. In this article, we will summarize the bulls’ thesis on TEAM. Atlassian Corporation (TEAM)'s share was trading at $207.89 as of May 6th. TEAM’s forward P/E was 48.78 according to Yahoo Finance.
A software developer looking out a window while confidently typing away on their laptop.
Atlassian (TEAM) continues to prove itself as a resilient, high-quality software company with a powerful free cash flow engine and long-term growth ambitions. The company is guiding toward approximately 50% on the Rule of 40, a clear indicator of its ability to balance steady revenue growth with robust free cash flow generation. Atlassian reiterated its goal of achieving a 20% compound annual growth rate through fiscal 2027, underlining management’s confidence in scaling the business efficiently. As it transitions from fiscal 2025 into fiscal 2026 this July, Atlassian remains committed to making teamwork easier at scale, reflecting its mission-driven approach. While recent growth may appear modest, management expects a meaningful inflection beginning next quarter, supporting the view that the business is stabilizing and poised to reaccelerate. The company’s impressive cash generation provides strategic flexibility and downside protection, making share price weakness a buying opportunity rather than a red flag. With a price target of $400 by summer 2026, Atlassian remains a compelling long-term investment. Its strong free cash flow, disciplined expense management, and scalable business model position it as a standout player in enterprise software, with the potential to deliver substantial shareholder value over time.
Atlassian Corporation (TEAM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held TEAM at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of TEAM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TEAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
