Morgan Stanley Keeps Underweight Rating, Raises PT to $14 for Asana

Morgan Stanley Keeps Underweight Rating, Raises PT to $14 for Asana

In a recent update, Morgan Stanley has maintained its underweight rating on Asana (ASAN) stock but has raised its price target to $14 per share. This move comes amidst the company's ongoing integration of AI-driven features, which have shown significant potential in driving revenue growth.

Asana's AI Studio, launched in 2025, has been instrumental in boosting the company's financial performance. In Q2 2026, Asana reported revenue of $196.9 million, a 10% year-over-year increase, with AI Studio contributing significantly to this growth [1]. The platform's Annual Recurring Revenue (ARR) more than doubled quarter-over-quarter, reaching $2 million by Q2 2026, up from $1 million in its first quarter [4]. This rapid adoption underscores AI Studio’s value proposition: automating workflows, integrating with enterprise data sources like Google Drive and SharePoint, and delivering real-time insights into task dependencies and performance metrics [1].

The financial implications are clear. Asana raised its full-year 2026 revenue guidance to $780–790 million, a range that reflects confidence in AI Studio’s scalability. For context, the enterprise segment—defined by customers spending $100,000 annually—grew 20% year-over-year in Q4 2025, with AI Studio as a key driver [4]. This aligns with broader SaaS trends: AI-powered tools are now expected to deliver tangible ROI, with 70% of organizations prioritizing AI integration by 2025 [3].

However, Morgan Stanley's decision to keep the stock underweight indicates caution. The stock currently trades at a forward P/E of 12x and a P/S ratio of 4.8x, below industry averages, while analysts have raised price targets to $18–$20 per share [1]. These metrics suggest undervaluation relative to peers, particularly given AI Studio’s potential to scale. However, risks persist: the company must prove that AI Studio can sustain revenue growth and defend against larger competitors with broader ecosystems [4].

According to our current ASAN stock forecast, the value of shares will rise by 3.56% and reach $14.74 per share by October 3, 2025. Per our technical indicators, the current sentiment is Neutral while the Fear & Greed Index is showing 39 (Fear). ASAN stock recorded 16/30 (53%) green days with 4.16% price volatility over the last 30 days. Based on the stock forecast, it's now a good time to buy ASAN stock because it's trading 1.26% above our forecast, and it could be undervalued [2].

Investors should consider the strategic implications of Asana's AI-driven strategy. The company's tiered pricing model ensures AI Studio is accessible across all paid plans, fostering upsell opportunities and aligning with SaaS trends toward consumption-based pricing and 8-12x revenue valuations [1]. Asana’s non-GAAP operating profit of $8.1 million in Q1 2025, alongside a 1,300-basis-point improvement in margins, further validates this model [1].

In conclusion, while Morgan Stanley maintains an underweight rating, the raised price target reflects the potential of Asana’s AI Studio to drive long-term value. Investors should closely monitor the company's ability to sustain growth and defend its market position against larger competitors.

References:
[1] Asana's AI Playbook: Why SaaS Valuations Are About to Shift [https://www.ainvest.com/news/asana-ai-playbook-saas-valuations-shift-2506/]
[2] Asana's Leadership Shift and AI Innovation: A Strategic Bet [https://www.ainvest.com/news/asana-leadership-shift-ai-innovation-strategic-bet-future-work-2506/]
[3] SaaS Trends 2025: AI and Data Revolution Reshaping [https://revenuegrid.com/blog/saas-trends-2025-ai-data-future/]
[4] Asana's AI Studio Gains Momentum: Should You Buy the [https://finance.yahoo.com/news/asanas-ai-studio-gains-momentum-143600713.html]