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Investing.com - Truist Securities lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $90 from $150 on Tuesday while maintaining a Buy rating on the shares. The stock currently trades at $64.08, down 71% over the past year and hovering near its 52-week low of $56.01.
The firm said Atlassian’s valuation reflects an overly bearish growth outlook at current levels. According to InvestingPro analysis, the stock appears undervalued with a Fair Value of $79.36, suggesting potential upside from current levels. The company maintains an impressive gross profit margin of 84% while analysts predict a return to profitability this year. The company is scheduled to report third-quarter fiscal 2026 earnings on Thursday, April 30, after the market close.
Truist said it expects growth drivers to remain similar to prior quarters, with paid seat expansions as the primary driver followed by migrations and cross-sell. The firm noted this will be the first earnings call for James Chuong as chief financial officer.
Feedback from partner conversations was mixed, according to Truist. One partner indicated an improvement in cloud momentum, while another expected weaker growth ahead. Both partners reported increased migration activity over the last two quarters.
Partners shared positive feedback on demand for Teamwork Collection but did not see potential for material revenue contribution from Rovo this year. Truist said growth commentary from partners exceeds market expectations reflected in the current stock price. For deeper insights, InvestingPro offers a comprehensive Pro Research Report on Atlassian, one of 1,400+ US equities covered with expert analysis and actionable intelligence.
In other recent news, Atlassian Corporation has introduced new AI-powered features in Confluence, aimed at transforming text content into visual formats. This includes the launch of Remix, which allows users to convert Confluence pages into charts, infographics, and presentation summaries. Meanwhile, KeyBanc has adjusted its price target for Atlassian from $170 to $130, maintaining an Overweight rating, after discussions with one of Atlassian’s major North American Platinum Partners revealed some initial friction due to changes in channel compensation.
Additionally, hedge fund founder Eric Jackson has taken a short position in Atlassian, along with other software companies, citing a pattern where companies frequently discussing AI underperform their peers. Truist Securities has reiterated a Buy rating on Atlassian, highlighting the company’s attractive valuation compared to its peers, with Atlassian shares trading at a lower multiple despite a strong subscription growth profile. Furthermore, KeyBanc has reaffirmed its Overweight rating on Atlassian following a restructuring announcement that includes a 10% workforce reduction, emphasizing the company’s focus on AI and cost-cutting measures.
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