Despite the negative sentiment that has pushed many stocks into the red on the Australian market today, aerial mapping company Nearmap Ltd (ASX:NEA) has bucked the trend with its share pricing rising 4% to 72 cents in morning trade.
What happened?
The bump in the share price may be attributed to a broker note issued by Morgan Stanley this morning. Morgan Stanley has initiated coverage on Nearmap with an overweight rating and a price target of $1.30, inferring an 88% gain on yesterday's closing price. After a disappointing 2017, Nearmap's shares have now gained 20% in 2018 as the market has repriced the stock in reaction to the strong growth the company is exhibiting in Australia and the U.S.
Earlier this month, the company announced an impressive set of growth numbers in annualised contract values (ACV). Group ACV increased from $41.3 million to $54.2 million as at 31 December 2017. Nearmap's Australian division's ACV rose from $37.0 million to $43.3 million, whilst the U.S. division saw ACV rise from $US3.1 million to $US8.5 million. Attention will now turn towards the company's release of its half yearly earnings report on February 21.
