Citi Slashes Atlassian Price Target to $160 as Mixed Analyst Revisions Follow Strong Q2

Overview

• Citi cut its Atlassian target to $160 from $210 on Feb. 9, kept a Buy rating, and cited sector turmoil while calling the company’s fundamentals sound.
• Morgan Stanley lowered its target to $290 from $320 with an Overweight rating, noting no signs of AI disruption in fiscal Q2 and highlighting encouraging momentum for Atlassian’s AI efforts.
• Bernstein trimmed its target to $290 from $304 with an Outperform rating, acknowledging investor GenAI concerns but asserting the company’s durability through potential disruption.
• Atlassian’s fiscal Q2 revenue rose 23.3% year over year to $1.59 billion, with acceleration driven by Data Center and Marketplace and steady 26.0% growth in Cloud.
• Management raised FY2026 guidance to roughly 22% average revenue growth, outlining expectations of about 24.3% for Cloud, 20.0% for Data Center, and 6.0% for Marketplace.