What happened
Asana (ASAN +1.94%) has less than one week to go before it publishes its latest set of quarterly results, and it seems that pundits aren't expecting a great performance. On Thursday, an analyst initiated coverage of the work platform software developer's stock, and his take didn't exactly inspire folks to scoop up some shares. As a result, Asana fell by nearly 7% on the day.
So what
That analyst is Citigroup's Steven Enders, who before market open started his coverage of Asana with a neutral recommendation at a price target of $23 per share.
In his research note, Enders wrote that the company is facing significant competition in the workplace platform space. That'll be a challenge to surmount, as compared to certain peers Asana has limited cash on hand. Meanwhile, its costs are high compared to those of competitors.
Such a take adds to investor concerns about the company's future. Although it is still growing revenue at double-digit rates, that growth is expected to slow -- in its most recently reported quarter, it posted a 57% year-over-year gain on the top line. However, the company is currently guiding for an annual rate of 43% at most for the entirety of its current fiscal 2023. And, like many young tech companies, Asana routinely posts net losses.
NYSE: ASAN
Key Data Points
Now what
We'll see if Enders' neutral stance is justified next week, since Asana is slated to publish its second-quarter fiscal 2023 results next Wednesday, Sept. 7. On average, analysts tracking the stock aren't particularly bullish; they're expecting the company to post a deeper net loss of $0.39 per share, well down from the $0.23 shortfall of the same period last year. A year-over-year comparison of sales estimates was not immediately available.
