TD Cowen Maintains Neutral Stance on Atlassian (TEAM) Stock

Atlassian Corporation (NASDAQ:TEAM) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 27, TD Cowen analyst Derrick Wood maintained a “Neutral” stance on the company’s stock, giving a Hold rating and reducing the price objective to $205 from $220.

The analyst’s rating is backed by a combination of factors that demonstrate a positive and cautious outlook for Atlassian Corporation (NASDAQ:TEAM)’s stock. As per the analyst, the company demonstrated consistent demand trends and is well-positioned to report robust revenue performance for the upcoming quarter. This will be backed by recent revenue recognition changes and M&A activities.

Amidst such positive indicators, the analyst also noted there are some concerns related to its new go-to-market strategies and AI positioning, which still need time to fully prove their effectiveness. Furthermore, Atlassian Corporation (NASDAQ:TEAM)’s transition away from Data Center licenses and the related revenue recognition changes are some of the potential risks.

Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

Among our top detractors were Baker Hughes, Argenx and Atlassian Corporation (NASDAQ:TEAM). Atlassian is a leading provider of innovative, customizable team collaboration software tools. The company reported modestly disappointing quarterly results in May, following two prior quarters of solid results, due in part to delays in signing some large enterprise contracts. Other potential headwinds, such as tariff pressure on customers’ software budgets and the potential impact of artificial intelligence (AI) on knowledge worker jobs, also weighed on investors. We have been monitoring these potential headwinds but don’t see any change in Atlassian’s long-term profit cycle, and we remain confident in the potential of several company-specific, multiyear growth drivers. And with the hiring of a new chief revenue officer in late 2024, Atlassian is working to enhance its senior management talent in sales, marketing, and R&D. With the stock trading at an attractive valuation, we added modestly to our position.

While we acknowledge the potential of TEAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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