Atlassian (TEAM) Receives Analyst Rating Update with Price Target Adjustment

Atlassian Corp (TEAM) received an updated analyst rating from Stephens & Co., maintaining an "Equal-Weight" position and lowering its price target from $221.00 to $202.00, a -8.60% change. This follows a series of revisions from other analysts earlier this month, with a consensus recommendation of 2.0, indicating "Outperform" status. The average target price is $261.15, with a high estimate of $420.00 and a low estimate of $196.00, suggesting an upside of 55.39% from the current price of $168.06. The estimated GF Value for Atlassian Corp (TEAM) in one year is $311.71, suggesting a 85.48% upside.

Title: Analysts Adjust Price Targets for Atlassian Corp (TEAM) Amid Mixed Outlook

Atlassian Corp (TEAM) has seen a series of analyst rating adjustments in recent weeks, with Stephens & Co. lowering its price target from $221.00 to $202.00, a decrease of -8.60%. This move follows a wave of revisions from other analysts, with a consensus recommendation of 2.0, indicating an "Outperform" status. The average target price is $261.15, ranging from a high of $420.00 to a low of $196.00, suggesting an upside potential of 55.39% from the current price of $168.06. The estimated GF Value for Atlassian Corp (TEAM) in one year is $311.71, indicating an 85.48% upside.

The latest adjustment by Stephens & Co. comes after Atlassian reported mixed fourth-quarter results, with revenue and cloud revenue exceeding expectations. However, the company's first-quarter guidance for fiscal year 2026 was light, and the full-year outlook for FY26 was mixed. Despite these mixed results, Stephens noted several positive factors, including strong seat expansion and 120% net revenue retention, which refute concerns that AI coding tools would slow growth.

The research firm highlighted Atlassian's reiteration of its fiscal year 2027 guidance of more than 20% total revenue compound annual growth rate, along with commentary suggesting multiple growth drivers that could keep the company in the high teens growth range long-term. Stephens based its new $202 price target on a 7.6x enterprise value to fiscal year 2 revenue multiple, compared to the post-COVID average of 10.6x.

Other analysts have also adjusted their price targets for Atlassian. Bernstein lowered its target to $296.00, acknowledging the company's solid earnings performance amid challenging conditions. TD Cowen set a new target of $220.00, expressing concerns over artificial intelligence impacts on SaaS companies. Mizuho and Raymond James adjusted their targets to $235.00 and $250.00, respectively, while maintaining an Outperform rating.

These developments reflect a cautious yet optimistic outlook from analysts regarding Atlassian’s future growth trajectory. Despite the mixed outlook, the company's strong performance in large deals and cloud business has been noted by several analysts. The international revenue trends also suggest a significant portion of Atlassian's revenue comes from outside the United States, with EMEA and Asia Pacific contributing 41% and 11% to the total revenue, respectively.

References
1. [1] https://au.investing.com/news/analyst-ratings/bernstein-lowers-atlassian-stock-price-target-to-296-on-fy26-outlook-93CH-3969167
2. [2] https://ca.investing.com/news/analyst-ratings/stephens-lowers-atlassian-stock-price-target-to-202-on-mixed-outlook-93CH-4149597
3. [3] https://finance.yahoo.com/news/international-markets-atlassian-team-deep-131504884.html