ASAN - Asana: Got Destroyed - But It Could Bottom Now
- Asana continues its unprofitable growth as the market battered its stock since its November highs. In addition, its lack of free cash flow profitability is baffling, despite robust gross margins.
- We cautioned investors in our previous article in January. We emphasized that ASAN stock was overvalued even after its initial decline. Asana stock has dropped a further 63% since then.
- However, our price action analysis suggests a near-term bottom could occur. Notwithstanding, we have not observed a double bottom bear trap.
- We revise our rating from Hold to Speculative Buy. Our medium-term price target for ASAN stock implies a potential upside of 33%.
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Asana: Got Destroyed - But It Could Bottom Now