BofA Securities initiated coverage of Atlassian Corporation (NASDAQ: TEAM) with a Neutral rating and a price target of $200, highlighting both the company's strong positioning in the collaboration software market and uncertainties surrounding its long-term growth profile.

The firm said Atlassian was well placed to capture share of the $58 billion project management and collaboration market, supported by its broad platform, central planning tools, and an installed base of more than 300,000 customers. Management has projected revenue growth of 20% or more through fiscal 2027.

However, BofA noted concerns over Atlassian's decision to accelerate the end of sales and support for its Data Center offering, along with risks tied to two large acquisitions. The firm said these developments made it harder to assess the company's durable growth trajectory, leaving risk and reward balanced at current levels.