On Friday, Baird, a global financial services firm, adjusted its stock price target for Asana (NYSE:ASAN), a work management platform, to $19.00, marking an increase from the previous $13.00 target.
The new target represents potential upside from the current price of $15.46, with analyst targets ranging from $10 to $25. According to InvestingPro analysis, Asana appears slightly undervalued based on its Fair Value metrics. Despite this change, the firm has decided to maintain a Neutral rating on the company's shares.
The revision in price target comes after Asana reported a strong quarter, surpassing expectations with its third-quarter revenue and providing fourth-quarter guidance that aligns with current market predictions. InvestingPro data shows impressive gross profit margins of 89.67% and revenue growth of 13.65%, though the company remains unprofitable over the last twelve months.
However, it was noted that net revenue retention (NRR) metrics have shown some weakening. Nonetheless, Asana has observed encouraging intra-quarter trends, particularly driven by growth in non-technology sectors and a stabilization in its core technology segment.
Asana's recent release of AI Studio in October has demonstrated promising early results. The new feature has been recognized for its potential to eventually surpass traditional seat-based revenue, indicating a strategic shift in the company's revenue model.
Looking forward, Baird analysts are planning to meet with Asana's new Chief Financial Officer, Sonalee Parekh, at the company's headquarters. During this meeting, the analysts aim to gain further insight into Asana's strategies for reaccelerating growth and implementing cost-saving measures. The discussion with Parekh will provide an opportunity to assess the company's future financial trajectory and operational efficiency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.