Slack Technologies (WORK) - Get Report  fell Wednesday after the corporate communications platform was the subject of a bearish note from D.A. Davidson that lowered the stock's price target.

The firm cut the price target $26 from $31 while maintaining its neutral rating after holding talks with the company's vice president of investor relations, Jesse Hulsing. 

D.A. Davidson noted that that the company was in the early stages of adoption by various companies that lie outside of its core vertical customer base. 

However, there is intensifying competition from bigwigs like Microsoft (MSFT) - Get Report  that are increasing their advertising spending to garner market share. 

Despite the headwinds and lowered price target, D.A. Davidson is still positive on Slack's future growth, but the firm also sees the company as being fairly valued at its current level.

Slack was trading down 3.5% on Wednesday to $24.80.