TD Cowen Lowers Atlassian (TEAM) Target but Sees Constructive Signals

Atlassian Corporation (NASDAQ:TEAM) ranks among the most promising QQQ stocks according to hedge funds. Before the company’s second-quarter earnings report on February 5, TD Cowen lowered its price target for Atlassian Corporation (NASDAQ:TEAM) from $205 to $175 on January 20, keeping a Hold rating on the company’s shares. According to the firm’s analysis, the software company’s Jira Service Management momentum, cloud migrations, improved packaging options, and strong sales hiring are all “fairly constructive” indicators.

Despite these encouraging signs, TD Cowen’s data indicates that Atlassian Corporation (NASDAQ:TEAM) has gained “little traction” with its AI solutions, which may have an effect on the company’s potential for future development. The firm pointed out that investors remain concerned about medium-term seat growth pressure from AI, even if Atlassian’s valuation “may look more attractive,” and that there may be space for a short-term stock rebound. Overall, these AI-related growth worries will remain “an overhang” for Atlassian.

Atlassian Corporation (NASDAQ:TEAM) provides team collaboration and productivity software, offering products such as Jira Software, Confluence, Jira Service Management, and Loom.

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