By Dhirendra Tripathi
Investing.com – Atlassian (NASDAQ:) stock soared 30% Friday as the company’s fourth-quarter results left brokerages impressed, with at least seven of them raising their price targets.
In the words of Co-founder and Co-CEO Mike Cannon-Brookes, the company had “a ripper of a quarter”. It added over 23,000 new customers, to pass the 200,000-mark.
“We have a lot of confidence in Atlassian, but the truth is we expected the cloud transition to be a bit choppier than it’s been to date. Perhaps the upside surprise has been a master class in expectations management, but more likely it’s that the firm has built cloud products that customers want and that they see value in making the cutover,” Canaccord Genuity analyst David Hynes wrote, according to StreetInsider.
Total revenue rose 30% to $559.5 million for the fourth quarter and topped $2 billion for the year for the first time.
The seven new price targets for the stock range between Truist Securities’ $270 and Mizuho Securities’ (NYSE:) $370. At 1152am ET, the stock traded at $331.50, still around 11% away from the Japanese brokerage’s target.
So far, the session’s high for the stock is $349.
Others who raised the target include BMO, Cowen Securities, Wells Fargo (NYSE:) and Piper Sandler.
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