Thursday - Macquarie initiated coverage on Atlassian (NASDAQ:TEAM) Corporation (NASDAQ:TEAM) with a Neutral rating and set a price target of $290. The firm cited a balance of upside and downside risks influencing the company's outlook.
According to the firm's assessment, Atlassian's conservative guidance could lead to potential near-term revenue and earnings per share (EPS) upside. However, they also noted that recent resignations among sales leaders might present challenges.
The analyst pointed out concerns regarding Atlassian's seat-based model. This apprehension is rooted in the observed five-year trend of declining software developer employment, which could impact the company's sales and overall growth trajectory.
Atlassian's business model relies on selling software licenses per user, making the number of software developers in the industry a key factor for its revenue.
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