Atlassian stock price target lowered to $220 by TD Cowen on AI concerns

Published 08/08/2025, 14:16
Atlassian stock price target lowered to $220 by TD Cowen on AI concerns

Investing.com - TD Cowen has lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $220 from $250 while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets for TEAM range from $196 to $480, with the stock currently trading at $171. The stock has declined over 45% in the past six months.

The firm cited artificial intelligence concerns weighing on software-as-a-service (SaaS) companies as a key factor in its decision, despite Atlassian reporting solid fourth-quarter results.

Atlassian delivered fourth-quarter revenue growth of 22%, representing approximately a 3% beat, which was stronger than the previous quarter’s 0.5% outperformance.

The company provided fiscal year 2026 guidance of 18% growth, one percentage point below Street expectations, though TD Cowen believes this outlook exceeds buy-side expectations and sees room for upside.

TD Cowen noted encouraging developments in paid seat expansion and enterprise execution for Atlassian, but pointed out that guidance calls for a seasonally weaker first quarter due to a lower expiry base.

In other recent news, Atlassian Corporation reported a 22% year-over-year increase in total revenue for the fourth quarter, surpassing Wall Street’s expectation of 20% growth. The company also saw strong performance in large deals and healthy cloud migration activity, with cloud revenue growing by 26%, exceeding the guidance of 23%. Despite these positive results, several analysts adjusted their price targets for Atlassian. Mizuho (NYSE:MFG) lowered its price target to $235, Raymond (NSE:RYMD) James to $250, and Goldman Sachs to $260, all maintaining positive ratings on the stock. However, Capital One (NYSE:COF) downgraded the stock from Overweight to Equal-weight, citing concerns over AI competition and valuation challenges. Bernstein SocGen Group, on the other hand, reiterated an Outperform rating with a $310 price target, noting ongoing investor debate and interest in the stock. Atlassian’s initial fiscal year 2026 guidance was in line with investor expectations, according to Raymond James. These developments reflect a mixed sentiment among analysts regarding the company’s future prospects.

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