From Barchart: 2025-04-16 16:02:00

TD Cowen lowered its price target on Atlassian (NASDAQ:TEAM) to $250 from $320, maintaining a Hold rating. Partner checks showed steady win rates and pricing benefits, but caution is growing around IT spending and partner structures. Despite optimism about cloud and enterprise momentum, short-term instability is expected in small business segments and data center migration.

The firm predicts a modest beat in the upcoming third quarter earnings but sees limited near-term upside. With shares down 35% since February, valuation is more attractive at around 30x expected 2026 free cash flow. However, macroeconomic uncertainty and questions about AI monetization could impact growth expectations.

TD Cowen’s new price target of $250 suggests a multiple of 38x on 2026 free cash flow, reflecting sector-wide devaluation pressures.



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