Why 2 Asana Analysts Raised Price Targets After Earnings

Strong customer wins across multiple price points by Asana Inc ASAN were called out as a key catalyst by analysts after the company's second-quarter earnings report.

The Asana Analysts: Piper Sandler analyst Brent Bracelin has an Overweight rating and raised the price target from $52 to $85.

KeyBanc analyst Steve Enders has an Overweight rating and raised the price target from $75 to $85.

Related Link: Asana Founder Dustin Moskovitz Buying Up Shares In June: What Investors Should Know 

The Analyst Takeaways: Asana reported 72% year-over-year revenue growth in the second quarter, which was an increase from the growth rate of 61% reported in the first quarter.

Bracelin highlighted triple-digit enterprise growth and a customer count of more than 107,000 in the second quarter.

“Another large 25K+ seat expansion deal at a Fortune 50 alongside broader footprint expansion across multiple departments reinforces the broad footprint potential for ASAN and the power of the work graph longer-term,” the analyst said. 

Asana has 598 customers paying over $50,000, which was up 111% year-over-year and a highlight for Bracelin.

“Net retention for $50K+ customers expanded to over 145% versus over 140% in the prior quarter demonstrating continued success in enterprise expansion among higher ARR customers.”

The analyst raised revenue estimates after the second-quarter earnings report and hiked the price target.

Enterprise strength and expansion were highlighted by Enders in a note on Asana's earnings report.

“Asana saw continued strong momentum in enterprise as deployments are becoming increasingly strategic and sales investment ramp,” the KeyBanc analyst said. 

Enders points to strong gains for Asana across several levels, including customers who pay $5,000 and $50,000. The company is gaining wins across multiple sales levels. International expansion was also highlighted by the analyst.

“We see a large and untapped market opportunity for Asana over the next five+ years as the market is still in the early days of adoption, with most workplace management still consumed via email/calendars/meetings/spreadsheets.”

ASAN Price Action: Asana shares were up 15.3% at $88.57 at last check Thursday. 

Photo: the Asana app.