KeyBanc maintains Asana stock Sector Weight amid CEO change

Published 11/03/2025, 10:54
KeyBanc maintains Asana stock Sector Weight amid CEO change

On Tuesday, KeyBanc Capital Markets analyst Jackson Ader maintained a Sector Weight rating on Asana (NYSE:ASAN) stock, which currently trades at $16.68. Ader’s assessment followed the company’s recent announcements, which included a margin increase that fell short of driving expected revenue acceleration. The stock has declined over 10% in the past week, despite maintaining impressive gross profit margins of 89%. According to InvestingPro analysis, Asana’s stock did not see the anticipated momentum in revenue growth, a key factor that had previously propelled the stock’s rise at the end of last year and into early 2025, with YTD returns now at -17.7%.

Ader pointed out several concerns, including Asana’s forecast for fiscal year 2026, which anticipates 9-10% growth in constant currency, slightly below the consensus expectation of 11% on a reported basis. This forecast comes as the company’s revenue growth has already shown signs of deceleration, with a current growth rate of 11.9%. Additionally, other less optimistic metrics and comments were highlighted, suggesting a more complex situation for the company. For deeper insights into Asana’s growth trajectory and comprehensive financial analysis, InvestingPro subscribers can access detailed research reports covering over 1,400 US stocks.

One significant development is the announcement that Asana’s co-founder and CEO, Dustin Moskovitz, is stepping back from his role and moving to the board, with plans to appoint a new CEO. Moskovitz has been known for his consistent share purchases over the years, often signaling his confidence in Asana to investors. His transition could have implications for the company’s direction and investor sentiment.

During the earnings call, Moskovitz also tempered expectations regarding the potential outcomes of AI and AI Studio, describing them as "high variance." This marks a change in tone from the previous quarter’s more optimistic stance, potentially affecting investor perceptions.

The stock’s reaction to these developments suggests that the market is responding to a combination of factors, with much of the news skewing more negative than positive. Asana’s recent updates present a mixed picture for investors, with leadership changes and cautious outlooks on innovation contributing to the current sentiment surrounding the stock.

In other recent news, Asana Inc . reported a 10% year-over-year increase in revenue for Q4 2025, reaching $188.3 million, slightly surpassing analyst expectations of $188.15 million. The company also achieved positive free cash flow of $2.6 million for the fiscal year, indicating improved financial health. Asana’s guidance for Q1 FY2026 projects revenue between $184.5 million and $186.5 million, representing a 7-8% growth, while the full fiscal year 2026 revenue is expected to reach between $782 million and $790 million. Despite these positive financial results, Asana’s stock experienced a significant decline, reflecting investor concerns over its future guidance and market conditions.

In efforts to drive future growth, Asana announced the expansion of its AI Studio platform, which is expected to contribute modestly to revenue growth. The company has initiated workforce reductions and operational improvements to enhance efficiency. Additionally, Asana’s customer base continues to grow, with a 20% increase in customers spending over $100,000 annually. Analyst firms have not provided specific upgrades or downgrades, but the company’s strategic initiatives and financial metrics suggest a focus on long-term growth and profitability. Asana’s ongoing efforts to stabilize its growth rate and improve profitability are evident in its recent financial performance and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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