From the MF ...December 29, 8:00am AEDT
Brendon Lau: Nearmap Ltd(ASX: NEA)
It’s a controversial call as tech stocks are deeply out of favour, but some analysts believe the Nearmap share price could surprise on the upside in 2022. Morgan Stanley has grown more confident on the mapping technology company since itstrading updatelast month.
The broker believes the group’s first-half annual contract value will be at least US$108 million (around AU$143 million) That is around AU$15 million above the same time last year. And if Nearmap can deliver a similar increment in the FY22 second half, it shouldn’t have too much trouble meeting consensus estimates.
In other words, too much bad news may be priced into the Nearmap share price, considering its crash of more than 30% this year to $1.53 as of Friday’s close. Morgan Stanley maintains an overweight rating on Nearmap shares with a 12-month price target of $3.20.
Motley Fool contributor Brendon Lau owns shares of Nearmap Ltd.