Piper Sandler on Asana (ASAN): 'Cost Discipline and AI Studio are Potential Game Changers'

Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and $27.00 price target on Asana (NYSE: ASAN).

The analyst commented: "Cost Discipline and AI Studio are Potential Game Changers; The beauty of an 89%+ gross margin model when cost discipline becomes a strategic focus is that profitability can be fast-tracked. New CFO Sonalee Parekh brings an efficient growth mindset that could drive a meaningful narrative shift on profitability for a former digital darling that has burnt cash every year since the 2020 direct listing. New AI features could also help elevate interest in intelligent work management tools like Asana, which is now adopted by 2.5M+ users. We reiterate our OW rating and $27 PT based on 1) three quarters of stabilizing top-line growth, 2) increasing appetite to embrace operational discipline, 3) expanding enterprise adoption with 85% of F100 using Asana, 4) add-on AI product revenue that could accelerate CY26E growth, and 5) an attractive risk-reward at 6.0x CY26E EV/S vs. peer median at 8.1x."

For an analyst ratings summary and ratings history on Asana click here. For more ratings news on Asana click here.

Shares of Asana closed at $21.75 yesterday.

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