Atlassian Corporation (TEAM) PT Lowered to $202 at Stephens

Stephens analyst Brett Huff lowered the price target on Atlassian Corporation (NASDAQ: TEAM) to $202.00 (from $221.00) while maintaining a Equal Weight rating.

The analyst commented: "TEAM delivered a mixed 4Q, guided FY1Q light, and guided mixed FY26. But think the biggest points from 4Q supporting the stock today are (1) data refuting worry that developer AI coding tools will slow growth (strong seat expansion, 120% NRR), (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, and (5) some worry got built when stock traded down ~8% in trading session before reporting AMC yesterday. 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)."

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