What happened

Shares of team-based business software developer Atlassian (TEAM 2.66%) surged 14.3% higher in May 2019, according to data from S&P Global Market Intelligence. The gains were powered by a rosy analyst review.

So what

Early last month, analyst firm Goldman Sachs upgraded Atlassian from "neutral" to "buy," with a target price of $125 per share. Goldman analyst Heather Bellini expected the company's fourth-quarter billings to come in near $376 million, far ahead of the $361 million Street consensus. Bellini also saw plenty of room for long-term growth thanks to Atlassian's "unique low-friction" sales model that lets the high-quality products do the talking.

A businesswoman manipulating a digital display floating in mid-air in front of her as a businessman watches closely.

Image source: Getty Images.

Now what

The fourth-quarter report at issue isn't due for another couple of months since Atlassian posted third-quarter results in April. We won't know whether Bellini was right or wrong until then. That being said, Atlassian has a proven tendency to crush Wall Street's revenue and billings estimates, sometimes by a tremendous margin. It's no surprise to see investors embracing a rosy billings forecast against that historical backdrop.