According to the Wall Street Journal, the consensus 12-month price target amongst analysts is $0.87 for junior technology firm, Nearmap Ltd (ASX: NEA).
Nearmap uses sophisticated cameras attached to planes, to create maps of fantastic clarity. Think of Google Maps, just clearer and more frequently updated.
The maps are used by construction and resources companies to gauge the progress of their projects, by solar panel providers and insurance companies to provide quotes, and by government and many other commercial and non-commercial users.
Nearmap is currently priced at $0.50 per share
After rising over 600% in 2013 then drifting mostly sideways throughout much of 2014, Nearmap shares have fallen around 25% in 2015 alone. This is despite the company recently declaring its maiden profit and officially announcing its expansion into the huge U.S. market.
Should you buy Nearmap?
The challenge for retail investors is to see past the hype to focus on the underlying business.
An analyst can arrive at almost any price target they desire, if they put a very positive figure into its expected revenue growth over coming years. It's also important to consider the company for what it is: A small-cap tech stock which could be both risky and volatile.
In saying that, however, I believe Nearmap looks to be a great buy at $0.50 per share. Whilst there are concerns of rivals entering the market, its Australian operations alone look to be capable of supporting its current price tag. And if you factor in some decent growth from overseas markets, it's definitely one to watch out for.
