ASAN - Asana plunges 25% as J.P. Morgan downgrades slashes PT on slowing growth

Asana (NYSE:ASAN) shares plunged in premarket trading on Thursday after the web and mobile work management company reported fourth-quarter results on Wednesday that prompted J.P. Morgan to downgrade the stock, citing slowing growth and declining margins. Analyst Mark Murphy lowered his rating to underweight from neutral and cut his price target to $32 from $66, noting that Asana (ASAN) guided fiscal 2023 revenue growth to be between 39% and 40%, down sharply from the 67% it saw in fiscal 2022. In addition, non-GAAP operating margins are expected to be around negative 45%, down from 70%. "The combination of slower top line with degrading margins may prompt increasing questions about pull-forward, efficiency of spend, and competitive  pressures, while investors are pivoting toward some semblance of reasonable near-term [free cash flow] multiples," Murphy wrote in a note to clients. Asana shares fell sharply in premarket trading on Thursday, falling slightly more than 24% to

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Asana plunges 25% as J.P. Morgan downgrades, slashes PT on slowing growth