Atlassian (TEAM) has additional upside as AI accelerates collaboration and adoption of its broader platform, RBC Capital Markets said Tuesday in a report.

The company's "system of work" positioning becomes more important in the AI era as increased code generation drives greater collaboration, with Atlassian expected to expand beyond its developer-focused base to reach more business teams, the report said.

Management's 18% full-year 2027 subscription annual recurring revenue growth target looks "conservative," with upside from Collections, Rovo/AI, seat growth, and cloud migration, RBC said.

Atlassian "should trade in line with peers as a category leader with underappreciated durable growth and margin expansion opportunity," the report said.

RBC initiated coverage of Atlassian stock with an outperform rating and a $215 price target.

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