Atlassian shares fell sharply on Thursday.
Guggenheim analyst Howard Ma reduced the price target by nearly 40%. The target price dropped from $190 to $115. The stock declined 6.3% during morning trading.
Ma attributed the cut to customers pausing commitments to evaluate AI solutions. This trend creates potential short-term slowdowns for the software provider.
Guggenheim maintained a buy rating despite the reduction. The $115 target suggests the stock could nearly double in value. Atlassian shares traded below $60 on Thursday.
Ma stated that Atlassian possesses a deep technology moat against AI. Wall Street analysts forecast long-term annual earnings growth of 20%.