Mizuho’s Gregg Moskowitz, one of three analysts with a $US125 price target on the stock, said he remained a buyer of the shares “especially on any significant weakness”.
Atlassian shares reached a record high of $US115.60 earlier this month.
Jefferies analyst John DiFucci said he viewed Atlassian as a “unique asset with very substantial opportunity”, but kept a “hold” rating on the shares with a $US105 price target, citing a “rich” valuation.
Despite the plunge, Atlassian is still trading at around 114 times its future earnings, according to Bloomberg statistics.
It means the market’s reactions to any perceived changes in its earnings growth can be extreme, and the impact – at least temporarily – can be significant for the paper wealth of the Atlassian co-founders, whose fortunes are largely tied to their stakes in the company.
On Thursday, Atlassian, which makes a suite of enterprise software products including project management tool JIRA, reported revenue of $US309 million ($430 million) for the March quarter.
The company said it expected revenue for its fiscal year, which ends in June, to be in the range of $US1.205 billion to $US1.207 billion, and for earnings to be $US0.82 a share. That fell short of consensus expectations for full-year earnings of $US0.92 a share, according to S&P Capital IQ.