Why Are Asana Shares Trading Higher Today?

Asana Inc's ASAN Q2 revenue of $89.5 million, up 72% year-on-year, beat the analyst consensus of $82.4 million. The Q2 EPS loss of $(0.23) beat the consensus loss of $(0.26).
The software company sees Q3 revenue between $93 million - $94 million, higher than the consensus of $86.7 million. It sees Q3 EPS loss of $(0.27) - $(0.26), better than the consensus loss of $(0.28).
Piper Sandler analyst Brent Bracelin raised the price target for ASAN stock to $85 from $52, implying a 10% upside, and reiterated an Overweight rating.
The triple-digit enterprise growth and new solid lands drove the customer count past 107,000, leading to the Q2 beat, Bracelin notes. He believes a higher multiple for the shares from increasing confidence in Asana's growth potential.
Keybanc analyst Steve Enders maintained an Overweight and raised the PT from $75 to $85.
Baird analyst Rob Oliver raised the PT to $90 from $50, indicating a 16.5% upside, and affirmed an Outperform.
The recent results underscored his bullish view based upon its best-in-class products, powerful hybrid go-to-market model, founder-led/truly innovative management team, and tailwinds from a tectonic shift in how knowledge workers work.
Asana appointed Anne Raimondi as the new COO, succeeding Chris Farinacci, who will retire at FY21 end.
Price Action: ASAN shares traded higher by 9.60% at $84.70 in the premarket session on the last check Thursday.

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