RBC Capital Downgrades Asana On Challenging Macro, Cash Burn Concerns
RBC Capital analyst Rishi Jaluria downgrades Asana, Inc (NYSE: ASAN) to Underperform from Sector Perform with a price target of $13 (23% downside), down from $21.
Jaluria views Asana's software as discretionary and, therefore, recession-prone.
He determines that project management is not a large TAM. He thinks the market is intensely competitive, with multiple pure-plays and several solutions that were part of broader software platforms.
Asana faces competition from more prominent vendors that have acquired into the space, including Adobe Inc (NASDAQ: ADBE) (Workfront), Citrix Systems, Inc (NASDAQ: CTXS) (Wrike), and, most notably, Atlassian Corp Plc (NASDAQ: TEAM) (Trello).
He views Asana's cash burn as problematic and the timeline to profitability as unclear.
He notes Asana's huge dependence on advertising, which is 30%+ of total sales and marketing spend.
Price Action: ASAN shares traded lower by 3.93% at $16.88 on the last check Tuesday.
Latest Ratings for ASAN
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | JMP Securities | Maintains | Market Outperform | |
Mar 2022 | RBC Capital | Maintains | Sector Perform | |
Mar 2022 | Piper Sandler | Maintains | Overweight |
View More Analyst Ratings for ASAN
View the Latest Analyst Ratings
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
