Why the Aerometrex (ASX:AMX) share price is surging 9% higher

The Aerometrex Ltd (ASX:AMX) share price is surging higher on Tuesday following the release of an update on its US operations…

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A happy woman raises her face in celebration, indicating positive share price movement on the ASX

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The Aerometrex Ltd (ASX: AMX) share price has been a particularly positive performer on Tuesday.

In afternoon trade the aerial mapping company’s shares are up a sizeable 9% to $1.31.

Why is the Aerometrex share price surging higher?

Investors have been buying Aerometrex shares today following the release of an update on its US operations.

According to the release, the Nearmap Ltd (ASX: NEA) rival has signed its first enterprise client in the United States market. And while the company hasn’t named the customer, the release explains that it is a leading US Defence contractor.

In addition, although the financial impact of the sale is immaterial, management believes it is an exciting milestone in the company’s growth strategy.

It explained that the sale is for a specific project and has the potential to develop into a much larger program in the future.

In the meantime, Aerometrex is continuing to pursue large enterprise opportunities in the US and notes that it has been gaining traction.

Aerometrex’s Managing Director, Mark Deuter, commented: “The US market provides a tremendous growth opportunity for Aerometrex’s 3D modelling and aerial imagery. We have carefully planned out our growth strategy for the US market, and the signing of our first enterprise client in the US is an exciting step as we begin commercialising our technology in this market. We have been gaining good traction in the US and look forward to announcing further new client signings.”

Supporting this growth will be its team of trained sales and technical staff in the US. Its sales staff are located in California, Florida, and Denver. Whereas its imagery capture program is centred in Denver. All production and delivery services continue to be headquartered in Adelaide.

Management also revealed that despite the impact of COVID-19, it is proceeding with its US 3D capture program. It has now captured the downtown (Central Business District) areas of the City of Denver, Centennial, Orlando, and Miami. A capture program of San Francisco will be undertaken at the next available weather opportunity

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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