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the project-management software company that just came public via a direct listing on the New York Stock Exchange, you might want to think again.
Bernstein analyst Zach Chrane picked up coverage of Asana (ticker: ASAN) late Thursday with an Underperform rating and $19 target price. The company opened for trading last week at $27, after the NYSE set a reference price” on the stock of $21. Near midday on Friday, the stock was off about 1% to $26.27.
Chrane’s assessment is that there’s nothing all that special about Asana’s software. The company declined to comment on the report.
“Asana provides a project management SaaS [software as a service] solution for relatively basic functions, in a market that is somewhat commoditized, in which we view Asana as a second-tier vendor,” Chrane wrote in a research note. “Competing products have similar core functionalities and pricing. Vendors in this field tend to frame their future growth as driven by market growth, rather than being driven by genuine differentiation. Asana has a solid product and a talented, visionary management team, but its solution does not stand out among peers.”
The company’s founder and CEO is Dustin Moskovitz, a co-founder of Facebook (FB).
A Bernstein survey found that the best-known player in the project- management software market by far is Microsoft Project, followed by
and Trello, which was acquired in 2017 by
(Barron’s uses Trello as part of its daily editorial work flow.)
Chrane says Asana’s product “appears easily replicable, technologically,” and he adds that the company faces “increasing competition from other pure-play vendors and mega-scale players.” He contends that the company’s self-described differentiation
Some of the names highlighted in this report are the ones whose services all of us use in our day to day life – Flipkart, Paytm, Byjus, PhonePe, Zomato, Policybazaar, Delhivery, Big Basket. Bernstein says these companies may well go for IPOs in 2021 and beyond.
These companies have significant market share in their respective industry and they have thrived extremely well during tough situations in Indian market. As we have seen in the past few months, many new companies have got listed in Indian market and their IPOs were highly oversubscribed in the retail category too. Also, the majority of these IPOs did reward investors with extremely high returns which makes them all the more attractive.
Now, retail investors can monitor these companies in internet space extremely closely as they have a humongous growth potential in India and can give excellent returns to investors. Many retail investors are not only looking at these IPOs for listing gains but also as a strong investment theme which can yield handsome returns in the next few years.
THE INTERNET ECOSYSTEM THEME IN INDIA
The growth in Indian E-Commerce is driven by online penetration (still very low penetration in eCommerce and life services), offline integration (internet companies turning offline as an addressable market), and traffic concentration, which is the conglomerates premium.
The E-Commerce market is expected to grow from US $24 bn in 2018 to US $133 bn in 2025 (CAGR of 30%). Online shoppers are projected to reach 330 mn by 2025, driving online retail market growth. The increase in internet penetration, higher per capita income, broader selection, and convenient delivery are driving adoption and growth.
Life services and Food delivery which includes food delivery, ride hailing, and online travel booking is expected to increase from US