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On Wednesday, BofA Securities analysts adjusted their outlook on Asana stock (NYSE: ASAN) by lowering the price target to $21 from $23. Despite maintaining a Buy rating, the decision reflects concerns over macroeconomic conditions affecting the enterprise segment. According to InvestingPro data, the stock has shown resilience with a 39.71% return over the past year, and currently trades near its Fair Value.
Asana recently reported solid first-quarter fiscal year 2026 results, with both revenue and operating margin surpassing expectations by 1% and 290 basis points, respectively. The company maintains impressive gross margins of 89.34% and has achieved revenue growth of 10.94% over the last twelve months. However, the company revised its revenue guidance midpoint downward by 0.4%, citing incremental macroeconomic softness despite favorable foreign exchange benefits.
The analysts noted positive developments with Asana’s AI Studio, which showed promising potential as a growth catalyst in the second half of fiscal year 2026. The company also exceeded the $1 million annual recurring revenue milestone in the first quarter, indicating strong performance. For deeper insights into Asana’s AI initiatives and growth metrics, check out the comprehensive Pro Research Report available on InvestingPro.
Profitability progress was highlighted as another positive factor, with Asana’s results ahead of market expectations. This supports the case for accelerating margin expansion, according to the analysts.
While the price target was reduced, BofA Securities remains optimistic about Asana’s future prospects, particularly with the potential upside from its AI Studio initiatives.
In other recent news, Asana has reported notable developments in its financial and strategic operations. The company achieved first-quarter fiscal year 2026 revenue of $187 million, slightly surpassing the consensus expectation and marking a 9% increase year-over-year. Asana also reported a non-GAAP earnings per share of $0.05, exceeding the forecast of $0.02, and reached its first-ever positive operating margin of 4.3%. Despite these positive results, the company has faced challenges with its dollar-based net retention rate, which declined to 95%, and calculated billings that fell below expectations.
In response to these mixed results, several analyst firms have adjusted their price targets for Asana. DA Davidson raised its target to $17 while maintaining a Neutral rating, and Jefferies increased its target to $17 with a Hold rating. Citizens JMP reiterated a Market Outperform rating with a $22 price target. Analysts have noted the potential of Asana’s AI Studio, which has achieved over $1 million in annual recurring revenue, as a significant growth driver, although substantial revenue contributions are not expected until fiscal year 2027.
Asana has also reduced the low end of its fiscal year 2026 revenue guidance by $7 million, anticipating potential macroeconomic challenges. The company remains optimistic about its AI Studio’s growth potential and its strategic initiatives aimed at enhancing profitability and expanding its market presence. Asana’s participation in upcoming technology conferences is expected to provide further insights into its strategies and innovations.
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