Citi Cuts PT on Atlassian Corporation (TEAM) to $160 From $210 - Here's Why

Atlassian Corporation (NASDAQ:TEAM) is one of the most oversold NASDAQ stocks to invest in. On February 9, Citi adjusted the price target on Atlassian Corporation (NASDAQ:TEAM) to $160 from $210, maintaining a Buy rating on the shares after the fiscal Q2 report. The firm cited “sector turmoil” for the target cut, believing that the company’s fundamentals are “sound”.

In another development, Morgan Stanley revised the price target on Atlassian Corporation (NASDAQ:TEAM) to $290 from $320 on February 6, maintaining an Overweight rating on the shares. The firm told investors that fiscal Q2 did not show any signs of AI disruption, but instead “pointed to encouraging momentum with the Atlassian AI story”. However, Morgan Stanley also stated that a modest organic deceleration in cloud is “not enough to reverse the narrative” and calm investor concerns on AI risks.

The same day, Bernstein also adjusted the price target on Atlassian Corporation (NASDAQ:TEAM) to $290 from $304, keeping an Outperform rating. It stated that if the company is followed closely, fiscal Q2 marked a good quarter on most dimensions. However, the firm also stated that near-term operating complexity is not helping GenAI narrative worries, making it an additional challenge for investors. Bernstein does not believe the negative GenAI narratives and instead stated that Atlassian Corporation (NASDAQ:TEAM) is durable through GenAI disruption.

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

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.