Is Nearmap Ltd still a buy?

The Nearmap Ltd (ASX:NEA) share price has more than doubled over the past year. Will it continue?

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Nearmap Ltd (ASX: NEA) has been a standout performer over the past year and many believe the tech company will continue to deliver solid returns to its shareholders.

Nearmap provides governments and businesses with aerial imagery and is looking to expand its presence which currently includes operations in Australia and the United States.

Nearmap claims to have the "most current, high-resolution aerial imagery of urban and regional metro areas in Australia".

The company states that the services it offers, available on a subscription basis, allow its customers to save time and money through a range of benefits such as those associated with replacing physical inspections with digital observations.

The company is showing little sign of slowing down, having announced on Thursday plans to expand into New Zealand where it claims to already hold imagery covering up to 72% of the population.

Investors appear to have responded positively to the news with Nearmap's share price gaining almost 8% as the company's market cap rose beyond $567 million on Thursday.

And some believe it's not too late to jump on board Nearmap with its shares currently trading for about $1.55.

Last month Morgan Stanley analysts raised their price target on Nearmap shares to $1.80 as investors received Nearmap's preliminary full-year results with enthusiasm.

The results suggest the company is growing with year-on-year increases in Annualised Contract Value (ACV).

Nearmap stated that its ACV balance as of 30 June 2018 had grown 41% on the prior corresponding period to $66.1 million.

The company is set to release its full FY2018 results next week.

Nearmap represents a lot of potential and it seems many are confident that potential will be achieved if the company's high valuation is anything to go by.

Nearmap is certainly a share to watch but there's better options in the ASX tech space such as Altium Limited (ASX: ALU) or Cochlear Limited (ASX: COH).

If you're looking for something else, this could be worth your time…

Motley Fool contributor Steve Holland has no position in any of the stocks 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 Scott Phillips.

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