Asana stock price target cut to $22 at Citizens JMP

Tuesday, Asana shares (NYSE:ASAN) faced a revision in their price target as Citizens JMP analyst Patrick Walravens adjusted the figure to $22.00, down from the previous target of $25.00. Despite this change, the firm maintains a Market Outperform rating on the company’s stock. According to InvestingPro data, while the stock has seen a 43% surge over the past six months, it’s currently trading near its Fair Value, with analyst targets ranging from $10 to $25.

The adjustment comes after Asana reported its fourth-quarter fiscal year 2025 results, which surpassed expectations but were coupled with a subdued forecast for fiscal year 2026. The company achieved a non-GAAP EPS of ($0.00), slightly better than the consensus estimate of ($0.01). Notably, the operating margin showed improvement, albeit still in the negative, at -0.9%, up from -4.1% in the previous quarter. InvestingPro analysis reveals impressive gross profit margins of 89.4%, though the company remains unprofitable over the last twelve months.

Asana’s revenue stood at $188 million, aligning with consensus estimates and marking a 10% year-over-year increase. This figure remained consistent with the revenue reported in the previous quarter. The company’s dollar-based net retention rate was 96%, which is on par with the last quarter’s performance but fell slightly short of Citizens’ projection of 97%.

In terms of billings, Asana reported $209 million, exceeding the consensus estimate of $206 million and representing a 12% year-over-year growth. Additionally, the company’s Remaining Performance Obligations (RPO) grew by 23%, outpacing the consensus expectation of 17%. However, it’s important to note that this metric does not account for monthly billings, which constitute approximately one-third of Asana’s business.

In other recent news, Asana Inc . reported a 10% year-over-year revenue increase for Q4 2025, reaching $188.3 million, slightly surpassing analyst expectations of $188.15 million. The company also achieved positive free cash flow for the fiscal year, indicating improved financial health. Despite these positive financial results, Asana’s stock experienced a significant decline, reflecting investor concerns over future guidance and market conditions. Asana’s co-founder and CEO, Dustin Moskovitz, announced he would be stepping back from his role, transitioning to the board, which could influence the company’s direction and investor sentiment.

The company has launched its new AI Studio platform, aimed at enhancing workflow coordination, which is expected to contribute modestly to growth. Asana projects its Q1 FY2026 revenue to be between $184.5 million and $186.5 million, representing a 7-8% growth. For the full fiscal year 2026, revenue is expected to be between $782 million and $790 million, with a non-GAAP operating margin of at least 5%. KeyBanc Capital Markets maintained a Sector Weight rating on Asana, highlighting concerns about the company’s fiscal year 2026 forecast, which anticipates growth slightly below consensus expectations.

Additionally, Asana is undergoing workforce reductions and operational improvements as part of its strategy to drive productivity and profitability. The company has seen a 20% increase in customers spending over $100,000 annually, demonstrating solid growth in its customer base. These developments present a mixed picture for investors, with leadership changes and cautious outlooks on innovation contributing to the current sentiment surrounding Asana.

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