RBC raises Atlassian stock price target on subscription growth outlook

RBC Capital has raised its price target on Atlassian Corporation (NASDAQ:TEAM) shares to $235 from $215, maintaining an Outperform rating. The firm expects the company to exceed consensus estimates for first-quarter results due to its research, noting that Atlassian introduced subscription annual recurring revenue as a new metric to eliminate data center migration noise in revenue recognition.

Atlassian's adjusted earnings per share for fiscal Q4 was $1.87, surpassing the consensus estimate of $1.50, with revenue reaching $1.77 billion, a 28% increase year-over-year. The company also achieved its first GAAP operating profit in over two years, with a 12% margin.

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