Oppenheimer analyst Ittai Kidron reiterated a Buy rating on Atlassian (NASDAQ: TEAM) today and set a price target of $35. The company’s shares opened today at $24.73.
Kidron said:
“Atlassian announced it’s acquiring privately held Trello for ~$425M ($360M in cash, the remainder in restricted stock/options). The transaction is expected to close in Atlassian’s 3Q FY17 (March 2017). Trello, with >19M registered users, offers a team- building and collaboration platform (project visualization, organization, interaction . . .) that’s complementary to Atlassian’s JIRA and Confluence products as a stand- alone service. The acquisition (~100 employees) is expected to be dilutive in FY17 and neutral-to-slightly accretive in FY18 for non-IFRS EPS. We’re positive and believe adding Trello is consistent with Atlassian’s heavy focus on R&D and product expansion and helps with diversification with non-technical teams. It should also help keep the company ahead of competitors increasingly adding work-flow capabilities.”
According to TipRanks.com, Kidron is a 1-star analyst with an average return of -1.3% and a 48.0% success rate. Kidron covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Advanced Micro Devices, and Riverbed Technology.
Atlassian has an analyst consensus of Strong Buy, with a price target consensus of $33.25.
Based on Atlassian’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $137 million and GAAP net loss of $2.64 million. In comparison, last year the company earned revenue of $110 million and had a net profit of $5.07 million.
Atlassian Corp. Plc operates as an enterprise software company, which engages in the designing, developing, licensing, and maintaining of software. Its products include JIRA software, JIRA services desk, JIRA core, statusPage, Confluence, HipChart, Bitbucket, SourceTree, Bamboo, Clover, Fisheye, and Crucible. The company was founded by Michael Cannon-Brookes and Scott Farquhar in 2002 and is headquartered in Sydney, Australia.
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