Here’s Why Truist’s Miller Jump Cut His Target on Atlassian (TEAM) Despite a Buy Rating Farooq Wed, November 11, 2026 at 1:01 PM EST 4 min read TEAM +2.40% ^IXIC +2.26% TFC +0.03% ^GSPC +1.62% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the Analysts Just Slashed Their Price Targets on These 10 Stocks and Atlassian (NASDAQ:TEAM) ranked 6th on this list.
Wall Street had its worst day in 19 months last Thursday, with chip stocks leading the selloff. The Nasdaq Composite fell 5.52% to 24,315.00, its biggest one-day drop since the April 2025 tariff announcement. The S&P 500 fell 4.36% to 7,353.73, erasing about $3 trillion in market value and marking its worst day since that same tariff crash. The Dow lost 3.44%.
The Nasdaq is now in a correction, more than 10% below the record close it set last month. Volume was heavy: 26.9 billion shares changed hands, against a 20-session average of 17.7 billion.
The trigger was politics. Investors worried about tighter AI regulation after Democrats won control of Congress, including in states where opposition to new data centers has been growing. The Philadelphia SE Semiconductor index fell more than 12% in one session, its worst day since March 2020. Candidates in both parties had campaigned against AI data centers, Yahoo Finance's Jared Blikre reported.
Melissa Brown, global head of investment decision research at SimCorp, said some newly elected members of Congress and governors want to slow the pace of AI infrastructure development, and that any slowdown would raise concerns. We covered the group's earlier pullback in our list of oversold AI stocks that Wall Street analysts saw 50%+ upside in, published before the selloff.
Jed Ellerbroek, portfolio manager at Argent Capital Management, called Thursday "the capitulation phase for the data center capex beneficiary stocks" and said the size of the moves looked excessive. Chip stocks did bounce on Friday: the semiconductor index rose 4.2% and the Nasdaq gained 1.1% to 24,579.43, and the S&P 500 rose 0.32% to 7,376.86, while the Dow slipped 0.46% to 51,285.73. But the Nasdaq still posted its fourth straight weekly decline, down 3.4% for the week, while the S&P 500 fell 2.7%, its worst week since June, and the Dow fell 0.9%.
Readers weighing how far the technology sector has fallen can also look at our roundup of technology stocks trading near 52-week lows that analysts favor. Through Thursday's close, the S&P 500 was still up 7.4% for 2026 and the Nasdaq up 4.6%. Friday's jobs report showed employers added 165,000 jobs in October, against 59,000 expected, and the unemployment rate fell to 4.1%. Traders expect the Federal Reserve to raise interest rates next month, following a hike in September.
Atlassian made it to our list because it has an average upside potential of 47%. Truist analyst Miller Jump kept a Buy rating on Atlassian but cut his price target to $200 from $250. He said strong first-quarter execution was "overshadowed by cautious guidance," and he questioned how durable cloud growth and margins will be as AI investments scale. He now models cloud growth settling in the low-to-mid 20% range over time. Wells Fargo stayed at Overweight on November 6 and lowered its target to $200 from $270.
Both cuts followed the outlook. Atlassian forecast fiscal 2027 revenue of $7.5 billion, above the $7.4 billion analysts expected, and its adjusted operating margin of 32% beat the 28.6% expected. But it guided cloud growth to 27% next quarter from 30.5%, and fiscal 2027 subscription ARR growth of about 18.5%, versus 23% in the first quarter. The stock fell about 16%. Truist still pointed to renewals, pricing and seat expansion as near-term supports.
Atlassian's Jira and Confluence tools help software teams plan and track work. Our analysis of its valuation and AI bet looks at whether new AI features can carry growth as the older business slows.
While we acknowledge the risk and potential of TEAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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