Mizuho lowers Atlassian stock price target to $235 on growth outlook

Published 08/08/2025, 13:26
Mizuho lowers Atlassian stock price target to $235 on growth outlook

Investing.com - Mizuho (NYSE:MFG) lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $235.00 from $265.00 on Friday, while maintaining an Outperform rating on the stock. The new target still represents significant upside from the current price of $171, with analyst targets ranging from $196 to $480. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value calculation.

The adjustment follows Atlassian’s fourth-quarter fiscal results, which showed total revenue growth of 22% year-over-year, exceeding Wall Street’s expectation of 20% growth. The company reported strong performance in large deals and healthy cloud migration activity during the quarter. InvestingPro data reveals impressive gross profit margins of 82.31%, though the stock has faced challenges with a -45.59% return over the past six months.

Atlassian’s management provided fiscal year 2026 guidance projecting 18% revenue growth, which fell below consensus estimates but slightly exceeded both Mizuho’s and buy-side expectations.

Mizuho expressed continued confidence in Atlassian’s multi-year growth prospects, highlighting the company’s pricing power and potential for significant Data Center-to-Cloud migrations over the next few years.

Despite the price target reduction, Mizuho reiterated its Outperform rating on Atlassian stock, indicating its positive long-term outlook for the company.

In other recent news, Atlassian Corporation has reported notable developments in its financial performance and market assessments. The company exceeded expectations in its recent earnings report, with cloud revenue growth reaching 26%, surpassing the guidance of 23%. Total (EPA:TTEF) revenue grew by 22%, outperforming consensus estimates by 2%. Additionally, Atlassian’s operating margin exceeded consensus by 230 basis points, as noted by Goldman Sachs. Despite these positive results, Raymond (NSE:RYMD) James lowered its price target for Atlassian to $250, while Goldman Sachs adjusted its target to $260, both maintaining positive ratings on the stock.

Meanwhile, Capital One (NYSE:COF) downgraded Atlassian from Overweight to Equal-weight due to concerns about competition in the AI space, setting a new price target of $211. Bernstein SocGen Group, however, reiterated an Outperform rating with a price target of $310, highlighting investor interest despite ongoing debates about the company’s guidance. Furthermore, Moody’s Ratings upgraded Atlassian’s senior unsecured notes to Baa2, maintaining a stable outlook and anticipating revenue growth of 20% or more in the next 12 to 24 months, driven by cloud subscription increases. These updates reflect a mix of optimism and caution among analysts regarding Atlassian’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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