10 AI Stocks Analysts Are Watching Closely

8. Atlassian Corporation (NASDAQ:TEAM)

Number of Hedge Fund Holders: 44

Atlassian Corporation (NASDAQ:TEAM) is one of the 10 AI Stocks Analysts Are Watching Closely. On August 11, Stephens analyst Brett Huff lowered the price target on the stock to $202.00 (from $221.00) while maintaining a Equal Weight rating.

The price target cut follows Atlassian’s mixed 4Q, guided FY1Q light, and guided mixed FY26.

Despite the PT cut, Stephens pointed out to several factors supporting the stock:

“(1) data refuting worry that developer AI coding tools will slow growth

(2) getting FY26 guide done w/o too much pain/deceleration (+18% YOY)

(3) a reiteration of FY27’s >20% total rev CAGR growth guide,

(4) commentary/data giving confidence in multiple growth drivers to keep TEAM in high teens growth range LT

(5) some worry got built when stock traded down ~8% in trading session before reporting AMC yesterday. “

The firm believes that AI-related demand fears are overblown and stock price is reasonable. Nevertheless, it isn’t going against market sentiment considering much of the growth is being pushed to later years.

“While we think AI-driven seat headwind fears are overblown and despite more reasonable valuation (trading 6.3x EV/FY2E rev), we don’t want to fight sentiment driven by AI and back-half loaded/FY27-loaded growth needed to meet guidance, so remaining EW. Updating target from $221 to $202 (based on 7.6x EV/FY2 rev vs. post-COVID 10.6x average).”

Atlassian Corporation (NASDAQ:TEAM) is a global software company that designs, develops, licenses, and maintains various software products worldwide.