Stephens Lowers Atlassian (TEAM) PT but Says AI Fears Are Overblown

Atlassian Corporation (NASDAQ:TEAM) is one of the AI Stocks Analysts Are Watching CloselyOn 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.”

Stephens Lowers Atlassian (TEAM) Target but Says AI Fears Are Overblown

A data analyst pouring over a chart, the intricacies of its lines being revealed.

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.

While we acknowledge the risk and potential of TEAM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TEAM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Investors Are Watching Closely and 10 AI Stocks Analysts Are Watching Closely.

Disclosure: None.