Atlassian shares hit record after Goldman recommends buying the stock

Mike Cannon-Brookes, left, in addition to Scott Farquhar, co-founders in addition to co-CEOs of Atlassian in addition to 2016 honorees on Fortune's 40 Under 40 list, pose for a photo in San Francisco on Oct. 13, 2016.

Kelly Sullivan | Fortune | Getty Images

Mike Cannon-Brookes, left, in addition to Scott Farquhar, co-founders in addition to co-CEOs of Atlassian in addition to 2016 honorees on Fortune’s 40 Under 40 list, pose for a photo in San Francisco on Oct. 13, 2016.

Atlassian shares jumped almost 7% to a record on Thursday, after analysts at Goldman Sachs raised their rating on the collaboration software company, citing the likelihood of better-than-expected financial performance.

The shares climbed as high as $125.31, giving Atlassian a market value of over $30 billion. The company, which was founded in Australia in 2002, has multiplied in value almost sixfold since its IPO in 2015.

The Goldman analysts, led by Heather Bellini, upgraded the stock to “buy” in addition to increased their cost target via $115 to $125 (which can be less than $1 a way). They wrote that will analysts’ consensus estimates for fourth-quarter billings of $361 million “appear conservative,” in addition to they’re projecting the number to come in at $376 million, representing 34% growth via a year earlier.

Atlassian has raised the prices of its products in each of the last two fiscal years, in addition to Goldman said that will sees the company “retaining the ability” to do so “as that will enhances product offerings.” Last year, Atlassian sold its HipChat messaging service to Slack in exchange for an investment within the company, which can be going public soon.

Atlassian sells several products that will are almost ubiquitous among developer teams, including tools for collaborating in addition to for tracking software issues. that will also has tools for announcing downtime for web services. The company competes in various ways with IBM, Microsoft, Salesforce in addition to ServiceNow.

“Longer-term, we are generally positive on Atlassian’s ability to penetrate non-that will organizations, given the company’s low-friction online sales motion in addition to strong established presence in collaboration,” the analysts wrote.

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