Atlassian slides after TD Cowen slashes target to $85 on AI disruption fears
Atlassian shares fell as TD Cowen cut its price target to $85 from $140 while reiterating a Hold rating. The note highlighted persistent worries about AI-driven disruption to developer and seat-based software models and softer demand signals in work management.
1) What’s moving the stock today
Atlassian (TEAM) is down about 3.5% as investors react to a fresh analyst reset on valuation and growth durability. TD Cowen cut its price target to $85 from $140 and kept a Hold rating, framing AI disruption risk as a central overhang for the stock. (investing.com)
2) The bearish drivers investors are focusing on
The selloff is tied to concerns that AI could pressure developer platforms and seat-based business models, creating uncertainty around the long-term demand curve. The note also flagged reduced visibility tied to revenue-recognition dynamics and ongoing data center-to-cloud migrations, keeping investors cautious even if near-term results beat. (investing.com)
3) Near-term setup and what to watch next
The company is expected to report fiscal Q3 results on April 30, 2026, and the market is likely to focus less on a modest quarter-to-quarter beat and more on forward indicators such as cloud migration pace, work-management demand trends, and any commentary on AI’s impact to usage and purchasing decisions. Additional pressure points include recent price-target cuts across the Street and investor sensitivity to any signs of channel friction. (investing.com)