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HSBC downgrades Asana to Reduce on core business pressure

HSBC downgraded Asana (ASAN) to Reduce from Hold with a price target of $10, down from $13, following the Q1 report. The earnings print pointed to continued pressures in Asana’s core technology segment and weakness in its enterprise and middle-market segments, the analyst tells investors in a research note. The firm says declining growth, pricing pressure, and sub-100 net revenue retention points to continued “poor performance” and indicates the company’s total addressable market and customer return on invested capital may be more limited than management had previously expected.

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