In a be aware to purchasers Friday, Citi analysts opened a 30-day draw back catalyst watch on Atlassian (NASDAQ:). The funding financial institution mentioned it sees the corporate’s analyst day as a possible draw back catalyst.
Based on Citi, TEAM dangers disappointing towards present med-term cloud progress and OPM expectations.
“Avenue Cloud expectations seem optimistic (significantly as a steerage start line) when contextualized towards present <30% natural cloud progress traits, near-term seat-expansion unlikely to ameliorate as iffy macro persists, and as server migration affect wanes,” wrote the financial institution.
Analysts consider that OPM enlargement momentum is also curbed, because the elimination of Cloud adoption ‘blockers’ and scaling of enterprise-class GTM warrants incremental investments, the place “TEAM might conceivably leverage a ‘license to take a position’ on the again of latest OPM upside and an investment-cycle.”
General, Citi says that these metrics touchdown under Avenue views are more likely to put downward strain on TEAM shares within the near-term.