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Key Takeaways
- Bank of America initiated coverage of Asana with a “buy” rating and a price target of $25, sending shares up over 5% to $18.95 Monday.
- Analyst Michael Funk said Asana is “underpenetrated” with core existing customers, leaving room for growth.
- He suggested greater focus on the enterprise market could “yield improving unit economics” for Asana and that it could benefit from vendor consolidation.
Asana (ASAN) shares surged over 5% to $18.95 Monday after Bank of America (BAC) initiated coverage of the work management platform with a “buy” rating and a price target of $25.
Analyst Michael Funk said Asana remains “significantly underpenetrated within its Core existing customers,” leaving room for revenue growth. He suggest that greater focus on its enterprise market could “yield improving unit economics.”
Funk noted Asana “is winning on vendor consolidation decisions” and said it could stand to benefit as “enterprises previously using multiple collaboration software vendors are moving seats onto Asana. We view it as a likely beneficiary of accelerating vendor consolidation trends within the category.”
With Monday’s advance, Asana shares have gained 6.8% so far this year. They’re up more than 28% over the past year.
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