The Nearmap Ltd (ASX: NEA) share price is out of form on Wednesday and edging lower.
At the time of writing, the aerial imagery technology and location data company's shares are down 2% to $2.23.
Despite this decline, the Nearmap share price is up almost 13% over the last two trading sessions thanks to a very positive trading update on Tuesday.
Can the Nearmap share price climb even higher?
A number of leading brokers have been giving their opinion on the Nearmap share price following yesterday's update.
One broker that believes Nearmap shares can keep on climbing is Morgan Stanley. This morning its analysts retained their overweight rating and $3.20 price target on the company's shares. Based on the current Nearmap share price, this implies potential upside of 43% over the next 12 months.
Morgan Stanley was pleased with the update and the fact that the company's outperformance is coming from the North American business. This side of the business was heavily criticised by a short seller several months ago. In addition to this, there were concerns that a patent dispute in the US could also negatively impact its sales.
In respect to the latter, the broker also highlights that Nearmap is seeking to dismiss the patent claims made by rival Eagleview.
Sitting on the fence
Analysts at Citi are sitting on the fence when it comes to the Nearmap share price. According to a note, the broker has retained its neutral rating and lifted its price target to $2.35. This implies modest upside of 5% over the next 12 months.
The broker was pleased to see that the patent dispute is not impacting its performance. However, it isn't overly convinced that this risk is behind the company fully just yet and has suggested that new contract signings could be harder in the region in FY 2022.
Citi commented: "A solid trading update from Nearmap which indicates that the legal proceedings from Eagleview is not having an impact on the US business. While Nearmap enters FY22e with solid momentum, we continue to be cautious as we see potential for the legal case to have an impact on growth in the US, especially in signing up new partners."
Finally, analysts at Macquarie have held firm with their neutral rating and $2.60 price target. Though, the broker is reviewing its forecasts following Nearmap's update and may make changes to its recommendation in due course.
