Asana Rallies Off Q4 Earnings: 6 Analysts Break Down The Report

Zinger Key Points
  • Asana is well-positioned to outperform through the year, one analyst says.
  • Although the company lowered its fiscal 2024 revenue growth guidance, its operating margin outlook was better, another analyst stated.

Shares of Asana Inc ASAN were surging Thursday in the wake of the software platform's fourth-quarter results. Here's what the Street has to say. 

DA Davidson On Asana

Analyst Robert Simmons maintained a Buy rating while raising the price target from $18 to $21.

“Asana posted solid revenue performance while delivering its strongest margin performance to date, and guided FY24 to have OK revenue paired with huge margin improvement,” Simmons said in a note. 

“We believe the company has set itself up well to outperform through the year, and to achieve its FCF goals,” the analyst said. “Unless macro takes a sharp turn worse, we believe there is limited downside to guidance,” he added.

KeyBanc Capital Markets On Asana
Analyst Jason Celino reiterated a Sector Weight rating on the stock.

Asana’s fourth-quarter revenue upside was modest, and its operating loss was narrower than expected, Celino mentioned. “While the company issued slightly lower FY24 revenue growth guidance in the 17-18% y/y range, OM guidance was much better at -19 to -20%,” he added.

“Most importantly, CEO Dustin Moskovitz announced a 30M share repurchase as part of an upcoming 10b5-1 trading plan,” the analyst wrote.

JMP Securities On Asana

Analyst Patrick Walravens reaffirmed a Market Outperform rating and raised the price target from $21 to $28.

Asana’s results were better than expected and the company has “product superiority in the enterprise, which is supported by its growth rate in the $5K plus category of 46% in the quarter,” Walravens wrote in a note.

“Mr. Moskovitz purchased 19M shares of Asana stock in September 2022, and announced today an additional 30M share trading agreement, further demonstrating his faith in the company and removing any doubt surrounding Asana's liquidity,” he further stated.

Check out other analyst stock ratings.

Piper Sandler On Asana

Analyst Brent Bracelin reiterated a Neutral rating while raising the price target from $13 to $24.

Asana’s results were better than feared, with operating expenses declining sequentially for the second consecutive quarter, “reinforcing leadership's commitment to reducing the cash burn,” Bracelin said in a note.

“Not surprisingly, outsized exposure to the technology vertical (30% of ARR) could remain a near-term drag on growth into the 2H,” he added.

Oppenheimer On Asana

Analyst George Iwanyc reaffirmed an Outperform rating and raised the price target from $25 to $28. 

“Asana reported a solid 4QFY23” and management’s efforts to “realign operating and sales priorities are starting to take hold, leaving us comfortable in the company's ability to deliver significant operating improvement in FY24 and reach positive FCF before the end of CY24,” Iwanyc said.

“And while the macro environment is weighing on seat expansion and Asana's overall NRR (>115%, -5pts QoQ), we believe these headwinds are also carefully accounted for in guidance, de-risking expectations and making for an attainable FY24 rev. target (up ~17-18%),” he added.

RBC Capital Markets On Asana

Analyst Rishi Jaluria maintained an Underperform rating with a $10 price target. 

“Asana delivered in line results and FY24 guidance against what we believe was a low bar,” Jaluria said. “However, the CEO announced plans to buy 30M shares, leading shares up 24% after market close (stock was down 2% prior),” he added.

“Asana's above-average exposure to tech and SMBs continues to pressure growth, as reflected in FY24 outlook of ~17% revenue growth as well as Asana's decision to pivot a focus on enterprise (which adds incremental execution, in our view),” the analyst further wrote.

ASAN Price Action: Shares of Asana were trading 22.47% higher at $21.80 Thursday morning. 

Photo via Shutterstock. 

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationTop StoriesAnalyst RatingsMoversTrading IdeasBrent BracelinDA DavidsonExpert IdeasGeorge IwanycJason CelinoJMP SecuritiesKeyBanc Capital MarketsOppenheimerPatrick WalravensPiper SandlerRBC Capital MarketsRishi JaluriaRobert Simmons
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