Asana Downgraded to Underperform at RBC Capital

RBC Capital downgraded Asana, Inc. (NYSE:ASAN) to underperform from sector perform and lowered its price target to $13 from $21 given the challenging macro backdrop and cash burn worries.

The analysts highlighted four primary reasons for the downgrade: (1) they view Asana's software as discretionary and therefore recession-prone, (2) they cannot see a substantial market opportunity for Asana, 3) the project management space is very competitive, with Asana, Smartsheet, and in the public sphere, as well as Airtable and ClickUp in the private sphere, (4) Asana's cash burn is worrisome and the timeline to profitability is unclear.