Wall Street Retreats on Atlassian Corporation Following Mixed Q4 FY2025 Results

Atlassian Corporation (NASDAQ:TEAM) is one of the 10 Most Promising Technology Stocks to Invest In. Analysts are lowering their price targets on Atlassian Corporation (NASDAQ:TEAM) following mixed Q4 FY2025 results.

On August 11, Stephens downgraded the price target on TEAM from $221 to $202, keeping its Equal Weight rating. Apart from Stephens, more than nine other leading analyst firms have reduced their price target on TEAM. On August 18, Citi’s analyst Fatima Boolani downgraded the price target on TEAM to $240 from $300, maintaining the Buy rating.

Wall Street Retreats on Atlassian Corporation Following Mixed Q4 FY2025 Results

Analysts have shown concern regarding the company’s updated models in the software space. The data center revenue is also expected to slow down in Q1 FY2026 due to a smaller expiration base and headwinds from previous programmatic shifts. Stephens’ analyst Brett Huff sees the AI-driven seat headwind fears to be ‘overblown.’ “It doesn’t want to fight sentiment driven by AI and back-half and FY27-loaded growth needed to meet guidance,” the analyst noted.

Despite the price downgrade from several analysts, Atlassian maintains the rating from the analysts, as they still believe in the potential of the firm. As of August 25, Atlassian Corporation’s (NASDAQ:TEAM) average price target of $250, based on analysts’ estimates, implies an upside of nearly 42.22% from current levels.

Atlassian Corporation (NASDAQ:TEAM) offers collaboration software that allows organizations to connect all teams via system of work that unlocks productivity at scale.

While we acknowledge the potential of TEAM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TEAM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.