On Friday, Jefferies adjusted its price target for Asana (NYSE:ASAN), a work management platform, increasing it to $16.00 from the previous $13.00. The firm has maintained a Hold rating on the stock. Currently trading at $15.46, InvestingPro analysis suggests the stock is fairly valued. The adjustment follows Asana's recent financial performance, which showed a revenue beat by $3 million, positioning it at the upper end of its last eight-quarter range of $1-4 million.
The analyst from Jefferies noted signs of stabilization for Asana, including an acceleration of the remaining performance obligations (RPO) growth to 21% year-over-year, up from 18% in the previous quarter. The company maintains impressive gross profit margins of 89.7% and has achieved revenue growth of 13.65% over the last twelve months.
Additionally, there has been an encouraging early response to Asana's AI Studio. However, the analyst also pointed out that the broader macroeconomic environment remains a challenge, and Asana continues to lose market share to competitors Monday.com and Smartsheet (NYSE:SMAR), which reported faster revenue growth of 33% and 17%, respectively, compared to Asana's 10%.
Despite the competitive landscape, there are indications that Asana may be reaching a turning point, supported by a share buyback program, stabilizing revenues, and improving losses. The report suggests that while Asana's new AI Studio is anticipated to have a positive impact, it will likely take time to significantly influence the company's performance, with general availability not expected until late in the first quarter of fiscal year 2026.
The Jefferies analyst concluded that while there are positive signs for Asana, including the support from the buyback and improvements in financial metrics, the company's stock rating remains a Hold, with the price target now set at $16.00.
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