Asana’s Challenging Financial Outlook: Sell Rating Amid Revenue Downgrade and Market Uncertainties

Morgan Stanley analyst Josh Baer has maintained their bearish stance on ASAN stock, giving a Sell rating on May 20.

Josh Baer has given his Sell rating due to a combination of factors impacting Asana’s financial outlook. The company’s growth trajectory appears challenged, as evidenced by the recent downgrade in FY26 revenue guidance. This adjustment reflects macroeconomic uncertainties, including potential changes in IT spending and tariff impacts, which were not previously accounted for in their guidance.
Additionally, Asana’s Q1 billings fell short of expectations, with a significant year-over-year decline. Despite some margin expansion, the company’s current valuation seems high compared to its SaaS peers, given its lower growth and margin profile. Furthermore, customer downsizing trends and ongoing uncertainty contribute to a less favorable market position, leading to a cautious outlook for Asana’s future performance.

Baer covers the Technology sector, focusing on stocks such as Box, Asana, and Coursera. According to TipRanks, Baer has an average return of 2.2% and a 50.81% success rate on recommended stocks.

In another report released on May 20, RBC Capital also maintained a Sell rating on the stock with a $10.00 price target.