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On Wednesday, JPMorgan analysts raised the price target for Asana stock (NYSE: ASAN) to $14 from $13, while maintaining an Underweight rating. According to InvestingPro data, the stock is currently trading near its Fair Value, with 13 analysts recently revising their earnings expectations upward. The adjustment follows Asana’s recent quarterly report, which presented mixed results. While some guided metrics exceeded expectations, other forward-looking indicators were softer.
Asana’s calculated billings were below consensus growth expectations, and its dollar-based net retention rate continued to decline, settling at 95%. The company maintains impressive gross profit margins of 89.34% and has achieved revenue growth of 10.94% over the last twelve months. Despite these mixed signals, Asana highlighted the success of its AI Studio product, which achieved over $1 million in annual recurring revenue in its first months of availability. The company views AI Studio as a tool to counteract gross dollar churn among certain customers.Discover more insights about Asana and access detailed Pro Research Reports covering 1,400+ stocks with InvestingPro.
The company acknowledged early signs of increased scrutiny and downgrade activities, particularly among enterprise and mid-market customers. As a result, Asana slightly reduced its revenue guidance for the year.
JPMorgan analysts noted that while Asana’s growth lags behind its peers, the company remains focused on profitability, with several strategies in place to improve margins significantly in the future.
In other recent news, Asana reported its first quarter fiscal year 2026 earnings, exceeding expectations with a non-GAAP earnings per share of $0.05, surpassing the consensus estimate of $0.02. Revenue for the quarter reached $187 million, slightly above the anticipated $186 million, marking a 9% increase year-over-year. Despite these positive results, Asana experienced a decline in customer retention with a net retention rate of 95%, slightly below the previous quarter’s 96%. Analysts at DA Davidson and Jefferies have both raised their price targets for Asana to $17, reflecting confidence in the company’s performance, although Jefferies noted longer sales cycles and increased scrutiny. Citizens JMP maintained a Market Outperform rating with a price target of $22, citing optimism about Asana’s future performance. The company also secured a record $100 million three-year deal, though at a lower annual contract value. Asana’s AI Studio is gaining momentum, with notable early uptake, although significant revenue contributions from this initiative are not expected until fiscal year 2027.
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