Analyst Matt Bullock of Bank of America Securities reiterated a Buy rating on Asana, with a price target of $19.00.
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Matt Bullock has given his Buy rating due to a combination of factors including Asana’s strong performance in the second quarter, where net revenue retention showed a positive inflection. This improvement was unexpected based on previous management guidance, and the AI Studio’s annual recurring revenue more than doubled, indicating potential for further growth with the upcoming self-serve rollout in the third quarter. Additionally, Asana saw accelerated growth in both North America and international markets, with non-tech sectors showing mid-teen growth rates.
Despite some challenges, such as reduced website traffic from AI search disruptions affecting the SMB segment, Asana’s overall risk appears manageable. The company’s execution and customer retention have improved, with management raising revenue guidance for FY26. The stock is trading at a modest valuation, and with multiple growth levers beginning to inflect positively, Bullock believes the risk/reward profile remains attractive, justifying the Buy rating.