(Updates stock move in the first paragraph.)

Asana (ASAN) shares soared more than 40% in recent Friday trading as Keybanc issued a note Thursday praising the tech company's recent performance.

Keybanc said the company's AI product extensions, stabilizing customer retention rates, and new finance chief are encouraging signs.

The company's fiscal Q3 highlight was its AI Studio, which features workflows that have agents built into them.

Finance Chief Sonalee Parekh, in her debut quarter, also cracked down on operating expenses to boost profit margins, Keybanc said.

"Whether it is low-cost geographies, reducing marketing expenses, focuses on sales efficiency and non-headcount expenses are all areas that have been identified as areas for leverage," the note said. "Simply benchmarking Asana against its peers, there would appear to be low-hanging fruit on all these fronts."

Keybanc said it was removing its downside price target on the stock and upgrading its rating to sector weight from underweight.