Asana (ASAN) PT Lowered to $88 at Berenberg

Berenberg analyst Andrew DeGasperi lowered the price target on Asana (NYSE: ASAN) to $88.00 (from $100.00) while maintaining a Buy rating.

The analyst commented, "Heavy investments a negative surprise, but we remain positive: ASAN shares are down 20% after-hours after the company reported top-line results and guidance ahead of consensus expectations but a FY23 margin outlook lower than expected. While some have questioned the recent deceleration in billings, we note this metric will be lumpy qoq on 1m+ customer lands - a more meaningful metric that tracks business momentum (cRPO) is running at 70% in Q4. Despite the volatility that afflicts ASAN shares and similar high-growth names, our positive thesis remains unchanged given its position in a large unpenetrated market opportunity and the likelihood that operating leverage will start to emerge in H222/H123. As such, we still see 80% upside from current levels to our $88 PT (was $100)."

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