Atlassian highlighted as one of OpCo's top picks for 2022 on cloud, SaaS momentum
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Atlassian (NASDAQ:TEAM) is being highlighted as one of Oppenheimer's top picks for 2022, as the investment firm believes the tech giant is building cloud and software-as-a-service momentum with larger customers, which should drive strong performance over the next several quarters.

Analyst Ittai Kidron, who rates Atlassian (TEAM) outperform with a $500 price target, notes the company's "steady cloud progress to date suggests low transition friction or customer pushback."
Atlassian (TEAM) shares are down more than 5% to $288.20 in early Monday trading, but have gained nearly 25% over the past year.
Kidron also noted that Atlassian (TEAM) is still early in penetrating IT operations and there is an "ongoing smooth execution across multiple areas, such as customer additions, or effective customer engagement and price leverage.
Atlassian (TEAM) has made "steady cloud progress" to date, which suggests there is "low transition friction or customer pushback." Over the next two years, Kidron said he thinks that is likely to continue, which should create "good support/prospects for elevated cloud revenue as the customer mix incorporates customers with more room for expansion."
"We see good support for strong subscription/cloud growth with room for upside as Atlassian invests in driving expansion/conversion/cross-selling," Kidron added. "We also expect recent Marketplace (~90% converted) headwinds to be less of a drag and instead help advance the cloud transition with larger customers."
In October, Atlassian (TEAM) reported first-quarter results that were better-than-expected, as both adjusted earnings and revenue topped analysts' forecasts. The company also said it expects second-quarter revenue to be between $630 million and $645 million, above what Wall Street was looking for.