Asana downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Brent Bracelin downgraded Asana to Neutral from Overweight with a price target of $16, down from $24, post the Q3 results. The analyst sees limited visibility into the timing of a stabilization in growth and path to profitability given the company’s "outsized exposure to technology layoffs that could further pressure growth next year." Asana appears to be entering a potential 6-9 month digestion period as tech unicorns and digital natives pause faster than it can diversify into non-tech verticals, Bracelin tells investors in a research note. He believes slowing growth, payment timing shifts at large enterprise customers, and high-cost structure could elevate the company’s quarterly cash burn volatility even after the restructuring.