Asana slides as results, guidance highlight weaker growth trends: analysts

Asana (NYSE:ASAN) was in focus on Wednesday as Wall Street firms expressed concern over the work management software company’s first-quarter results and guidance, citing a continued slowdown in growth.

Shares fell 9.5% in premarket trading.

The all-important billings metric missed estimates in the first-quarter and with revenue guidance lowered for the full-year, Morgan Stanley analyst Josh Baer said Asana has a difficult road ahead. “Shares are trading at ~5x EV/CY26 Sales, similar to SaaS peers, which we continue to see as too rich given lower growth and lower margin profile, more challenged mkt position, customer downsizing trends and uncertainty,” Baer wrote in a note to clients. He kept his Underweight rating on Asana and lowered his price target to $13 from $14.

Jefferies analyst Brent Thill was a bit more measured in his analysis, but said there is simply not enough artificial intelligence momentum to offset worries elsewhere.

“While Q1 beat [the] high-end of guide and ASAN signed a record $100M 3-yr deal, the renewal was at a lower [annual contract value] after slipping past Q1,” Thill explained. “[The company] also started seeing longer sales cycles with higher scrutiny. The low end of FY26 rev guide was lowered by $7M to embed risk of further macro deterioration. While AI Studio momentum is encouraging, material [revenue] is unlikely until FY27.”

Thill kept his Hold rating and slightly raised his price target to $17 from $15.

Bank of America analyst Michael J. Funk lowered his price target to $21 from $23, but kept his Buy rating, as he expressed a bit more optimism on Asana.

“Upside from AI Studio in 2HFY26 appears increasingly likely, in our view, and would represent a positive catalyst. Profitability progress was also impressive and ahead of Street expectations, supporting the accelerating margin expansion bull case,” Funk wrote in a note to clients.

“We believe this is warranted given Asana’s multiple levers for long-term growth, partially offset by [a] lower margin profile,” Funk added.