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HR service delivery market is accelerating, says William Blair. William Blair analyst Justin Furby spent time researching the human resource service delivery sector and believes the market "remains in the early innings of adoption." Spending on HR service delivery applications has significant growth potential over the next several years, Furby tells investors in a research note. He thinks that over the last 9 to 12 months, there appears to be a "clear acceleration" in activity levels in the HR service delivery market. He estimates the annual HR service delivery application opportunity is $1.4B in the U.S. and $2B-$3B globally. Both ServiceNow (NOW) and Ultimate Software (ULTI) appear well positioned to participate in the growth of HR service delivery applications, and though competitive dynamics "are likely to heat up over time," the market can support more than one growth story, contends Furby. Further, he expects expect Workday (WDAY) "to enter the discussion over time." The analyst has Outperform ratings on all three names.

Atlassian price target raised to $108 from $88 at DA Davidson. DA Davidson analyst Rishi Jaluria raised his price target on Atlassian (TEAM) to $108 and kept his Buy rating after its acquisition of OpsGenie and the launch of Jira Ops, noting that these developments will heighten the company's competition with ServiceNow (NOW). The analyst further states that the announcements are a reflection of Atlassian's evolving strategy to maintain its market leadership position in collaboration software that also strikes a balance of growth and profitability. Jaluria also notes that his new price target assumes the same 47-times multiple of enterprise value to expected FY20 free cash flows rolled out by another year.

Atlassian price target raised to $83 from $70 at Jefferies. Jefferies analyst John DiFucci raised his price target on Atlassian (TEAM) to $83 following today's acquisition of OpsGenie for $295M as well as its launch of JiraOps product. The analyst notes that the offerings address "a significant additional use case for the company's existing Jira platform, strengthening the company's appeal to IT teams and service management". DiFucci also believes that the product will "meaningfully launch" Atlassian into ServiceNow's (NOW) core market. Longer term, DiFucci keeps his Hold rating on Atlassian.