On Friday, JMP Securities updated its assessment of Asana (NYSE: ASAN), stock a work management platform with a market capitalization of $3.53 billion, by raising its price target from $21.00 to $25.00 while maintaining a Market Outperform rating.
This adjustment follows Asana's third-quarter earnings for fiscal year 2025, which surpassed expectations. According to InvestingPro data, the stock currently trades near its Fair Value, with analysts' targets ranging from $10 to $22.
Asana reported a non-GAAP EPS of ($0.02), beating the consensus estimates of ($0.07). The company achieved an operating margin of negative 4.1%, which is an improvement from the negative 8.7% margin reported in the previous quarter. Revenue came in at $184 million, slightly above the consensus forecast of $181 million, marking a year-over-year increase of 10% and remaining consistent with the previous quarter's figures. InvestingPro analysis reveals an impressive gross profit margin of 89.7%, though the company remains unprofitable over the last twelve months.
Despite a slight decline in dollar-based net retention, which fell to 96% from 98% in the previous quarter, Asana's reported billings of $176.8 million showed a year-over-year increase of 10%. However, billings fell marginally short of the consensus estimate of $177.3 million. Notably, the company's remaining performance obligations (RPO) grew by 21%, an acceleration from the 18% growth observed in the last quarter.
Following the release of these results, Asana's stock experienced a significant increase of 19% in aftermarket trading. This surge comes after a year-to-date decline of 19%, in contrast to the Russell 3000's 27% increase. With a beta of 1.23, the stock shows higher volatility than the broader market. The company's performance and subsequent market reaction underscore its resilience and potential for growth in the competitive software sector.
For deeper insights into Asana's valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
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