Atlassian stock price target lowered to $205 from $220 at TD Cowen

Investing.com - TD Cowen reduced its price target on Atlassian Corporation (NASDAQ:TEAM) to $205 from $220 while maintaining a Hold rating ahead of the company’s first-quarter fiscal 2026 earnings report. According to InvestingPro data, Atlassian maintains impressive gross profit margins of 82.84% and has achieved 19.66% revenue growth over the last twelve months.

The software company is scheduled to release its quarterly results on October 30, with TD Cowen expecting "solid revenue performance" despite some elevated first-quarter seasonality in close rates according to their supply-chain checks.

The research firm anticipates Atlassian will deliver larger-than-normal revenue beats and raised guidance, attributing this outlook to recent revenue recognition changes and merger and acquisition activity.

TD Cowen noted that Atlassian’s current valuation of approximately 21 times enterprise value to calendar year 2026 estimated free cash flow appears attractive from a financial perspective.

Despite the favorable valuation, the firm maintained its Hold rating, citing that Atlassian’s new go-to-market initiatives and artificial intelligence positioning "still need time to prove out." For deeper insights into Atlassian’s valuation metrics and growth prospects, investors can access additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

In other recent news, Atlassian Corporation has completed its acquisition of The Browser Company of New York Inc., the creator of the Dia and Arc browsers. This move is part of Atlassian’s strategy to develop an AI-powered browser tailored for knowledge workers. Meanwhile, KeyBanc has adjusted its price target for Atlassian to $210, citing general AI risk concerns, although it maintains an Overweight rating on the stock. Canaccord Genuity has reiterated its Buy rating on Atlassian, setting a price target of $230, highlighting the company’s initiatives to transition Data Center customers to Cloud deployments. Bernstein SocGen Group has maintained its Outperform rating with a $296 price target, reassessing potential revenue impacts from changes in Data Center contract licenses. Wells Fargo has initiated coverage on Atlassian with an Overweight rating and a price target of $216, pointing to the company’s strong pricing and potential in cloud and AI sectors. These recent developments provide investors with various perspectives on Atlassian’s market position and future prospects.

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