Piper Sandler has revised its outlook on Asana (ASAN, Financial), reducing the price target to $17 from the previous $18 while maintaining an Overweight rating. This adjustment comes in light of several challenges currently facing the cloud applications and analytics industry, including tariff impacts, policy changes, and obstacles in adopting artificial intelligence technology.
The firm notes that investor sentiment is waning, with the sector experiencing moderated growth for the fourth consecutive year. Additionally, complications in AI adoption are contributing to these headwinds, suggesting a potential cooling in the AI fervor. As a result, valuation multiples across the sector have decreased to levels not seen in seven years, though the direct impact of tariffs on software models remains minimal.
Despite these hurdles, Piper Sandler's continued Overweight rating on Asana indicates a belief in the company's potential to navigate these challenges successfully, even as the broader cloud software market faces significant pressures.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Asana Inc (ASAN, Financial) is $16.01 with a high estimate of $23.00 and a low estimate of $12.00. The average target implies an upside of 10.55% from the current price of $14.48. More detailed estimate data can be found on the Asana Inc (ASAN) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Asana Inc's (ASAN, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Asana Inc (ASAN, Financial) in one year is $23.10, suggesting a upside of 59.53% from the current price of $14.48. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Asana Inc (ASAN) Summary page.
