Asana sinks following latest earnings as multiple firms lower price targets
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Asana (NYSE:ASAN) fell 7% by late morning trading Wednesday as multiple financial firms lowered their price targets on the work management software platform following its latest financial results.
“ASAN continues to operate in a challenging environment, underpinned by increased budget scrutiny, longer sales cycles, slipped deals into Q3, and headwinds in the technology vertical,” said Piper Sandler analysts, led by Brent Bracelin, in an investor note.
Asana shares are down 35% year to date.
Asana also announced this week it would replace long-time Chief Financial Officer Tim Wan with Sonalee Parekh, the current chief financial officer with RingCentral (RNG). Parekh will assume the new position at Asana on Sept. 11. Wan will remain with Asana in an advisory position.
“Encouragingly, Q2 saw a record number of multi-year deals, ‘stabilizing’ in-quarter NRR, improvement in certain verticals, and positive feedback on AI teammates,” Bracelin noted. “However, the CFO transition adds another element of risk with Sonalee Parekh to succeed Tim Wan.”
Piper Sandler lowered its price target to $12 from $14 and assigned Asana a Neutral rating.
KeyBanc Capital reiterated its Underweight rating on the stock and lowered its price target to $10 from $12.
“The level of expenses for the amount of revenue booked remains elevated, and we are now entering a period where expense growth is flirting with outpacing revenue growth,” said KeyBanc analyst Jackson Ader, in a note.
“With large deals increasingly becoming more of the mix and the Company saying explicitly that it struggled with getting deals closed on time, the 4Q25 sequential build presents a real risk,” Ader added.
Meanwhile, Oppenheimer maintained its Outperform rating, but lowered its price target to $20 from $23.
“Asana reported better than expected 2QFY25 results; however, ongoing macro headwinds on seat expansion and deal push-outs led to a 3Q miss,” said Oppenheimer analysts, led by Ittai Kidron, in a note. “We expect this to weigh on investor sentiment, and it could create near-term volatility in the shares.”
Asana has a Buy rating from Seeking Alpha analysts, and a Hold rating from Wall Street analysts. It also has a Hold rating from Seeking Alpha’s Quant system, which routinely beats the market.