theage.com.au
9.29amNearmap in focus after contract upgrade
ByAlex DruceandColin Kruger
Investors will be zeroing in on Nearmap this morning after the aerial mapping firm upgraded one of its key financial metrics yesterday evening.
The $1 billion company announced after Tuesday’s close an upgrade to its annual contract value for the 2021 financial year.
RBC analyst Garry Sherriff said this was down to continued momentum from a strong first-half result, led by core industry verticals in insurance, government and roofing both in new and existing customers.
Nearmap has upgraded its annual contract value.CREDIT:NEARMAP
RBC said Nearmap’s new ACV guidance of $128 million to $132 million was up 5 per cent at the mid-point.
Morgan Stanley said continued execution in the US market was a key feature of the upgrade.
“This upgrade comes before the seasonal June peak, implying confidence and de-risking the FY22e growth profile.”
Morgan Stanley has a $3.20 price target on the stock. Nearmap shares closed at $2.06 on Tuesday and are down 7.2 per cent for the year so far.
Nearmap also reiterated its target for 20 per cent to 40 per cent per annum from FY22 onwards, versus an RBC estimate of 20 per cent to 21 per cent growth.
“This performance validates our strategy to focus on our core growth verticals of insurance, government and roofing, with the adoption of premium content types particularly strong from these verticals, driving returns from the investments we made into new and expanded content,” Nearmap chief executive Rob Newman said yesterday.
