shares traded higher Monday amid a broad market selloff after multiple analysts picked up coverage of the newly public—and recently discounted—cloud-based work management software company.
Asana (ticker: ASAN) came public Sept. 30 in a direct listing on the New York Stock Exchange. The stock closed the first day of trading at $29.96 a share, and then drifted lower, recently dropping below the $24 level. On Monday, the stock inched up 0.5% to $23.63.
As a whole, analysts covering the stock see a substantial opportunity to grow the business. Still, they are wary about valuation, note that competition is considerable, and point out that Asana’s heavy spending to grow the business will weigh on financial performance in the near-term.
Here’s a brief rundown of some of the analyst comments from Monday.
- Stan Zlotsky, Morgan Stanley: Equal Weight rating, $27 target. “We see plenty of growth ahead … however, with a crowded competitive landscape, we prefer other assets in software.”
- Mark Murphy, J.P. Morgan: Neutral rating, $25 target. “As it leverages marketing investments to drive self-service adoption, and invests in direct sales reps to expand growth among its base of users to capture this large opportunity, Asana is generating substantial operating losses.”
- Brent Bracelin, Piper Sandler: Neutral rating, $25 target. “Investor optimism in the growth prospects over the next year is appropriately factored in.”
- Alan Kurtz, KeyBanc: Sector Weight rating, $26 target. “Asana is investing heavily in the longer-term opportunity … potentially capping multiple expansion in the near term, in our view.”
- Brad Zelnick, Credit Suisse: Neutral rating, $23 target. “We view Asana as a leading SaaS work management platform that helps teams orchestrate and coordinate work effectively,” he writes. “However, against this opportunity is an evolving and crowded competitive landscape with ‘land grab’ type competitive mechanics. Given our views on the large but immature market, competitive dynamics, and Asana’s current unit economics and margin profile, we initiate at Neutral.”
- Ittai Kidron, Oppenheimer: Outperform rating, $30 target. “We believe Asana is poised to benefit as enterprises look for ways to improve work flow and worker productivity,and could see material revenue upside ahead,” he writes.
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