10 Hot Growth Stocks to Invest in According to Analysts

5. Atlassian Corporation (NASDAQ:TEAM)

% Gain Over 6-Month Period: ~55.3%

Average Upside Potential: ~41.6%

Number of Hedge Fund Holders: 75

Atlassian Corporation (NASDAQ:TEAM) is engaged in designing, developing, licensing, and maintaining various software products.  Keith Weiss from Morgan Stanley reiterated a “Buy” rating on the company’s stock, with a price target of $315.00. The analyst’s optimism around the company’s prospects is supported by Atlassian Corporation (NASDAQ:TEAM)’s expanding market opportunities throughout several large sectors, together with significant potential for cross-selling and upselling as a result of a broadened range of solutions and a more focused go-to-market strategy. Furthermore, the ongoing migration from Data Center to Cloud, together with the company’s strong pricing power, continue to paint a favourable outlook for the company.

The expected operational efficiency gains, mainly with the internal use of Gen AI to fuel developer productivity, are some of the growth enablers. Elsewhere, Barclays analyst Ryan MacWilliams upped the price objective on Atlassian Corporation (NASDAQ:TEAM)’s stock to $350 from $275, keeping an “Overweight” rating. The firm believes that investors can gain more confidence in Atlassian Corporation (NASDAQ:TEAM)’s medium-term revenue growth algorithm considering management’s optimism around customer desire to increase their spend with the company and higher interest in committing to a cloud migration.

Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Among our top Q4 contributors were Atlassian Corporation (NASDAQ:TEAM), Spotify and Marvell Technology. Atlassian provides collaboration and productivity software tools—a large, structurally growing addressable market that is expanding from the core software developer market to a much larger “knowledge worker” market. Along with much of the software industry, the company went through a period of weakness as small and medium-sized businesses pulled back spending due to macroeconomic concerns, and enterprise IT spending shifted toward AI projects at the expense of traditional cloud software offerings. However, shares rallied after earnings results beat expectations and showed signs of a turnaround, including higher-than-expected paid seat expansion.”