Macquarie tips Nearmap share price to hit $4.22

Nearmap Ltd (ASX: NEA): Buy, hold, sell?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Financial news wires are reporting that the share market analysts at Macquarie Group Ltd (ASX: MQG) are tipping the Nearmap Ltd (ASX: NEA) share price to hit $4.22 within the next 12 months.

Nearmap shares are already up around 800% over the past 5 years and may have some gas left in the tank if the Macquarie analysts are on the money.

This afternoon the shares are up 7% to a record high of $3.97 with investors betting that it will continue to grow sales of its aerial mapping software to U.S. businesses. 

As Macquarie and other research houses such as Morgan Stanley have pointed out Nearmap boasts attractive economics as a business due to its recurring revenue subscription model that leads to high gross profit margins as once a business subscribes it has relatively little extra fixed costs on an ongoing basis.

The US market opportunity is also huge compared to Australia where Nearmap has already built a profitable business. 

For the six months ending December 31 2018 Nearmap posted a profit before tax of $312,000 and has potentially many years of strong growth left in it. However, investors should remember that it comes with considerable risks and already has a lot of growth baked into its share price.

Tom Richardson owns shares of Macquarie Group Limited and Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Macquarie Group Limited and 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.

More on Share Gainers

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »