Atlassian dips on Mizuho price target cut
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Atlassian (NASDAQ:TEAM) is trading over -8% after Mizuho brought down its price target to $360 from $500.
Analysts cited "material recent contraction in comp multiples" for its lowered expectations, even as they reiterated that the software company will "benefit from good customer demand, and from its strategic actions that should drive much better cloud adoption and overall monetization in FY22 and beyond."

Mizuho also highlighted Atlassian's recent FY23 operating margin guidance of mid-teens, versus Wall Street estimates of over 20%. The company's margins have been pressured by investments in substantial growth opportunities, including work management and the buildout of enterprise cloud offerings.
Canaccord Genuity Group also most recently lowered its price target on the software company at the end of April despite Q3 earnings results coming in above the consensus estimates.
This followed price cuts by several other Wall Street analysts, including Piper Sandler, Cowen and KeyBanc. Atlassian expects its operating margins to return to historical levels in the long term.