The Nearmap Ltd (ASX: NEA) share price hit a record high of $4.29 this week and closed up around 14% from $3.61 to $4.12 despite the company not releasing any specific news to the market. However, a couple of factors may be causing investors to bid the software-as-a-service aerial mapping company higher.
First, up is news this week that the powerful analysts at Macquarie Group Ltd's (ASX: MQG) securities team have team ran the ruler over the company in June and came up with a valuation of $4.22 per share.
A lot of retail investors like to base their investment decisions on these kind of 'broker calls' and as such may have bid the stock up. Macquarie's research note reportedly outlined how it believed Nearmap still has a big opportunity to grow in the U.S. and how its sky high gross profit margins backed by a recurring revenue SaaS business model mean it could print big profits in a few years' time.
Another factor that may be causing investors to jump in is the nearing of the June 31 2019 end of financial year.
On July 10 2018 and July 7 2017 Nearmap announced to the market its preliminary financial results for the relevant financial year.
As such it's quite possible it announces FY 2019's preliminary results within the next few weeks, with some investors perhaps betting more evidence of strong U.S. growth or Canadian sales could see the shares go even higher.
