MATT BELLMacquarie downgrades Nearmap to underperform and slashes target price to $1.30 as the aerial mapping business faces increasing competition in Australia and New Zealand.The broker says Nearmap, which is trading at a premium to other listed aerial imaging peers, is likely to see its market share at home fall as new players enter the market and it faces litigation risk overseas."We forecast growth to moderate in ANZ from more competition, whilst in North America Nearmap will continue to gain market share, but this will result in higher OPEX," the broker says.Macquarie says those assumptions drive its FY22-24 revenue, and EBITDA forecasts, which are up to 34 per cent below consensus. Its revenue estimates for that period have slightly changed, while EBITDA is revised down by 41 per cent.The $1.30 target price is based on an enterprise value multiple of 20 times forecast EBITDA in FY23.Shares in Nearmap are 6.7 per cent lower to $1.29 at 3.18pm AEDT.
NEA Price at posting:
$1.31 Sentiment: Sell Disclosure: Not Held
