Atlassian (NASDAQ:) stock has been on a tear, soaring 125% over the past 12 months.

This productivity and planning software designer is responsible for products so beloved by programmers around the globe.

Anybody who works for a software startup, major corporation or large open-source program will likely be familiarized with Atlassian’s products like Jira or Confluence or Bitbucket or Trello.

Atlassian stock is the best way to participate in the wider rise of software engineering, as it offers products that span many stages of the software development process. The stock’s recent performance and its now-elevated value make me bullish. (See TEAM stock charts on TipRanks)

Atlassian’s Moat Widens with Acquisitions

The company’s acquisition of Trello in 2017 was a move that effectively solidified its position at the very top of its industry.

There are plenty of alternatives. However, few alternatives are as widely used or simple to use than those in Atlassian’s rapidly expanding ecosystem. Atlassian’s products make it easy to use, despite the complexity of learning new tools and products. This is true for both companies using its products as well as employees with technology experience.

Atlassian’s continued success in “software for development” is proof of its rapid pace. The company is a well-known name in tech, and has the unique chance to increase its client base by offering new products.

The continued growth of work-from home should also be a major factor for TEAM over the next several years.

Wall Street’s Take

According to TipRanks’ consensus analyst rating, TEAM stock comes in as a Moderate Buy. There are 10 Buys out of 16 analysts ratings. Six Sells exist.

The average TEAM price target is $347.54, representing 15.6% downside potential. The price targets of analysts range from $275 to $400 per share.

Bottom Line

After continued momentum in 2021, shares now find themselves trading at 49.7 times sales. This is a high price for any fast-growing tech company.

Atlassian is a solid name to choose from. It boasts a strong EPS beat streak and secular tailwinds.

Atlassian is an established software company, with plenty of potential for expansion. It also offers a unique way to be part of ongoing digital transformation.

Disclosure: Joey Frenette did not hold shares in the mentioned companies at publication.

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