Mizuho Lowers Atlassian (NASDAQ:TEAM) Price Target to $185.00

Key Points

• Mizuho cut its price target on Atlassian to $185 from $205 but kept an "outperform" rating, a target that implies roughly a 145% upside from the stock's current ~ $75.45 price; the consensus analyst target is about $188.52 with a "Moderate Buy" rating.
• Atlassian will eliminate roughly 10% of its workforce (~1,600 jobs) to self‑fund AI and enterprise sales initiatives, a move that sparked an after‑hours rally but also triggered leadership turnover (CTO departure) and potential short‑term execution risks.
• The company beat quarterly EPS and saw revenue rise 23.3% year‑over‑year, yet remains unprofitable (negative net margin and ROE), while insiders have been selling shares and the stock trades far below its 12‑month high.

Atlassian (NASDAQ:TEAM - Get Free Report) had its price target dropped by investment analysts at Mizuho from $205.00 to $185.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the technology company's stock. Mizuho's price target would indicate a potential upside of 145.20% from the stock's current price.

Several other research firms have also recently issued reports on TEAM. Oppenheimer decreased their price target on Atlassian from $275.00 to $150.00 and set an "outperform" rating on the stock in a report on Friday, February 6th. KeyCorp reduced their price objective on Atlassian from $210.00 to $170.00 and set an "overweight" rating for the company in a report on Friday, February 6th. UBS Group restated a "neutral" rating and set a $105.00 price objective on shares of Atlassian in a research report on Friday, February 6th. Sanford C. Bernstein lifted their target price on Atlassian from $290.00 to $304.00 and gave the stock an "outperform" rating in a report on Tuesday, November 18th. Finally, Guggenheim reduced their price target on shares of Atlassian from $225.00 to $190.00 and set a "buy" rating for the company in a report on Friday, February 6th. Twenty research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Atlassian has a consensus rating of "Moderate Buy" and a consensus price target of $188.52.

Atlassian Stock Performance

Shares of NASDAQ TEAM opened at $75.45 on Thursday. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.62. The company has a market cap of $19.90 billion, a P/E ratio of -104.79, a P/E/G ratio of 309.01 and a beta of 0.94. The business's 50 day moving average is $107.55 and its two-hundred day moving average is $142.25. Atlassian has a 12 month low of $67.85 and a 12 month high of $242.00.

Atlassian (NASDAQ:TEAM - Get Free Report) last released its earnings results on Thursday, February 5th. The technology company reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.12 by $0.10. Atlassian had a negative net margin of 3.29% and a negative return on equity of 6.33%. The business had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same quarter last year, the company earned $0.96 earnings per share. The firm's revenue was up 23.3% on a year-over-year basis. On average, equities analysts expect that Atlassian will post -0.34 EPS for the current year.

Insider Transactions at Atlassian

In other Atlassian news, Director Scott Farquhar sold 7,665 shares of Atlassian stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the sale, the director directly owned 275,940 shares of the company's stock, valued at approximately $26,161,871.40. The trade was a 2.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CRO Brian Duffy sold 1,222 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $81.35, for a total value of $99,409.70. Following the transaction, the executive directly owned 124,332 shares of the company's stock, valued at approximately $10,114,408.20. This trade represents a 0.97% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 359,131 shares of company stock worth $50,672,589. Corporate insiders own 36.66% of the company's stock.

Hedge Funds Weigh In On Atlassian

Several hedge funds have recently modified their holdings of the stock. Capco Asset Management LLC purchased a new position in shares of Atlassian during the 2nd quarter worth about $25,000. MV Capital Management Inc. bought a new stake in Atlassian during the fourth quarter valued at about $25,000. Physician Wealth Advisors Inc. lifted its holdings in shares of Atlassian by 60.4% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 162 shares of the technology company's stock valued at $26,000 after purchasing an additional 61 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Atlassian by 447.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company's stock worth $42,000 after purchasing an additional 161 shares during the last quarter. Finally, Atlantic Union Bankshares Corp lifted its holdings in shares of Atlassian by 19,900.0% during the third quarter. Atlantic Union Bankshares Corp now owns 200 shares of the technology company's stock worth $32,000 after purchasing an additional 199 shares during the period. Hedge funds and other institutional investors own 94.45% of the company's stock.

Atlassian News Summary

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Atlassian will cut roughly 10% of its workforce (about 1,600 jobs) to "self‑fund" investments in AI and enterprise sales, a move management framed as accelerating the company's transition to an AI‑first business and improving the path to sustained profitability. Atlassian to lay off about 1,600 people in pivot to AI
• Positive Sentiment: Market response: shares rallied in after‑hours trading following the announcement, reflecting investor approval that the cuts could accelerate profitability and fund AI initiatives. Atlassian to cut roughly 10% jobs in pivot to AI
• Neutral Sentiment: CEO messaging emphasized a human approach to layoffs and rejected a simple "AI replaces people" narrative, aiming to calm employees and customers even as the company shifts headcount and skills. Atlassian to Cut 10% of Jobs Citing AI. But Its CEO Used a Human Touch for the Layoffs.
• Negative Sentiment: The restructuring includes leadership turnover (CTO departure reported) and localized impacts (e.g., ~63 roles in Washington state, layoffs in India), which could create execution risk and short‑term disruption to product roadmaps. Atlassian layoffs impact 63 workers in Washington as CTO steps down
• Negative Sentiment: Operational note: a Jira-to-cloud migration tool previously designed to speed cloud moves reportedly slowed adoption, highlighting product execution and migration risks that could temper the benefit of AI initiatives. Atlassian built a tool to migrate Jira users to the cloud and it made the move slower

About Atlassian

Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.

Atlassian's product portfolio centers on tools designed to help teams plan, build and support software and business processes.

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