Assessing Atlassian (NasdaqGS:TEAM) Valuation After Williams F1 Scooter Tie Up And Reaffirmed Analyst Rating
Atlassian (TEAM) is back in focus after its Atlassian Williams F1 Team partnered with dashmoto on a limited edition electric scooter, a branding move that arrives alongside a recently reaffirmed positive analyst rating.
See our latest analysis for Atlassian.
Atlassian's recent branding push with the Williams F1 tie up and reaffirmed positive analyst view comes against a backdrop of mixed performance, with a 90 day share price return of 8.89% and a 1 year total shareholder return decline of 34.2%, suggesting some momentum has picked up recently while longer term holders have seen weak results.
If this kind of tech driven branding story has your attention, it could be a good moment to widen your research and look through high growth tech and AI stocks for other ideas in the space.
So with Atlassian trading at a discount to both analyst targets and some intrinsic estimates despite mixed recent returns, is there still a buying opportunity here or is the market already pricing in the company’s future growth?
Most Popular Narrative: 34.4% Undervalued
With Atlassian last closing at US$160.87 against a narrative fair value of about US$245.24, the valuation gap is pinned on ambitious growth and profitability assumptions.
Analysts assume that profit margins will increase from 4.9% today to 3.6% in 3 years time.
Curious what justifies this kind of upside? The narrative leans on rapid revenue expansion, a sharp earnings swing and a future earnings multiple rarely seen outside premium growth names.
Result: Fair Value of $245.24 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to factor in the risk that complex cloud migrations slip and that heavy AI investment struggles to translate into the kind of monetization analysts expect.
Find out about the key risks to this Atlassian narrative.
Build Your Own Atlassian Narrative
If you look at the numbers and come to a different conclusion, or just prefer to build your own view from scratch, you can create a full narrative in a few minutes by starting with Do it your way.
A great starting point for your Atlassian research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
Looking for more investment ideas?
If Atlassian has sharpened your interest, do not stop here. The next strong idea could be sitting in a corner of the market you have not checked yet.
- Spot companies that the market may be overlooking by running through these 882 undervalued stocks based on cash flows and comparing their prices with your own expectations.
- Explore AI-focused businesses by scanning these 27 AI penny stocks and seeing which names line up with your view of technological trends.
- Tap into potential income opportunities by reviewing these 12 dividend stocks with yields > 3% and checking which yields and payout profiles appeal to you.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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