Atlassian stock jumps 20%, as 85% margins spark undervaluation debate

Atlassian shares rose more than 20% over the last month. This rebound follows a period of decline over the past year.

Analysts are re-evaluating the company’s market valuation and growth trajectory. The company maintains gross margins of nearly 85%.

Analysts expect free cash flow margins to expand over the next year. Efficient sales and marketing costs support a bullish outlook. Some valuation models suggest the stock’s fair value sits significantly above current levels.