Asana, Inc. (NYSE:ASAN) was cut to Neutral with a $21 price target at DA Davidson by its analysts in a note to clients on Friday.
The analysts said the company's revised guide shows worse second-half performance than previously expected.
"Asana posted its smallest revenue beat vs. guidance in its 11 quarter public history, and its slowest growth, and raised FY24 guidance by less than the quarter's beat," they explained.
"We like the continued improved focus on costs and efficiency, and the work on generative AI is promising, but too early to bake materially into expectations."
Due to the little change to estimates compared to the strong recent stock performance that has erased the valuation gap to peers, the firm decided to downgrade the stock.
DA Davidson has adjusted its FY24 estimates for Asana to be in line with guidance, with slightly lower second half revenue and margin. For FY25, they have slightly lowered their growth estimates but left margins essentially unchanged and now look for 18% revenue growth and $5 million of FCF.