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BofA Reiterates Buy Rating on Asana (ASAN), Lowers PT to $21

On June 4, Bank of America Securities analyst Michael Funk reiterated a Buy rating for Asana, Inc. (NYSE:ASAN), reducing the price target to $21 from $23. The analyst based the rating on the company’s future prospects and financial performance, as reported in the fiscal Q1 2026 earnings released on June 3.

The analyst reasoned that despite a minute drop in revenue guidance led by macroeconomic challenges, the company’s financial results exceeded expectations in terms of operating margin and revenue.

A financial professional at his desk, working intently on his wealth management software.

Revenue for the quarter underwent a 9% year-over-year growth to $187.3 million, while Q1 GAAP operating margin improved 15 percentage points year-over-year. Asana, Inc. (NYSE:ASAN) also reported its first positive non-GAAP operating margin in company history, expanding non-GAAP operating margin by 1,300 basis points year over year.

According to the analyst, these trends indicate the company’s potential to effectively manage profitability, which is a positive sign for investors.

The Asana AI Studio is also showing promising potential, as it exceeded the $1 million ARR threshold. The analyst expects it to be a prominent growth driver in the fiscal year’s latter half, further supporting the Buy rating.

While we acknowledge the potential of ASAN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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