Atlassian price target lowered to $200 from $280 at Piper Sandler

Piper Sandler lowered the firm’s price target on Atlassian (TEAM) to $200 from $280 and keeps an Overweight rating on the shares. The firm notes the company delivered solid Q2 results, showing no negative impact from AI adoption. A slightly lighter cloud beat vs. Q1 will drive debate coming out of the quarter, but Piper was encouraged by the organic annual cloud guide seeing a raise in excess of quarterly upside, albeit modest. With shares at 10 times its 2027 free cash flow estimate, the firm thinks the market is pricing in a very pessimistic long-term growth scenario, one it disagrees with. Atlassian is a top idea in Piper’s coverage.