Analysts Slash Atlassian Price Targets to $160 and $290 as AI Push Boosts Demand
Analysts trimmed Atlassian’s price target to $160 from $210 at Citi and to $290 from $320 at Morgan Stanley, citing sector turmoil and modest cloud deceleration despite sound Q2 fundamentals. AI-infused Jira, Confluence and Service Management adoption is driving customer spending as the stock trades near its lowest historical valuation.
1. Analyst Price Target Cuts
On February 9, Citi reduced its price target to $160 from $210 while maintaining a Buy rating, attributing the cut to sector volatility. Morgan Stanley and Bernstein followed, cutting targets to $290 from $320 and $304 respectively, yet both kept Overweight and Outperform ratings.
2. Fiscal Q2 Fundamentals
Atlassian’s fiscal second quarter delivered stable revenue growth and resilient cloud booking momentum, with no signs of AI disruption undermining performance. Analysts noted that core fundamentals remain sound despite a modest deceleration in organic cloud growth.
3. AI Integration and Valuation
The company has embedded AI capabilities across Jira Software, Confluence and Jira Service Management, fueling increased customer adoption and higher spending. Shares now trade near multiyear lows relative to growth peers, marking the cheapest valuation in its history.