MENU

Morgan Stanley slaps $1.30 share price target on Nearmap Ltd

Despite the negative sentiment that has pushed many stocks into the red on the Australian market today, aerial mapping company Nearmap Ltd (ASX:NEA) has bucked the trend with its share pricing rising 4% to 72 cents in morning trade.

What happened? 

The bump in the share price may be attributed to a broker note issued by Morgan Stanley this morning. Morgan Stanley has initiated coverage on Nearmap with an overweight rating and a price target of $1.30, inferring an 88% gain on yesterday’s closing price. After a disappointing 2017, Nearmap’s shares have now gained 20% in 2018 as the market has repriced the stock in reaction to the strong growth the company is exhibiting in Australia and the U.S.

Earlier this month, the company announced an impressive set of growth numbers in annualised contract values (ACV). Group ACV increased from $41.3 million to $54.2 million as at 31 December 2017. Nearmap’s Australian division’s ACV rose from $37.0 million to $43.3 million, whilst the U.S. division saw ACV rise from $US3.1 million to $US8.5 million. Attention will now turn towards the company’s release of its half yearly earnings report on February 21.

Bill Gates Says This Could Be Worth "10 Microsofts"

If You Missed Investing In Microsoft in 1996 - Read This

I can't believe so many investors haven't heard about something Microsoft founder Bill Gates told a group of college students in 2004.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool Contributor Tim Katavic has no financial interest in any company mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.