One of the best performers on the S&P/ASX 200 Index (ASX: XJO) on Wednesday has been the Nearmap Ltd (ASX: NEA) share price.
In afternoon trade the geospatial map technology provider's shares are up a sizeable 8% to $2.68.
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Why is the Nearmap share price surging higher today?
Investors have been fighting to get hold of the company's shares today following the release of a presentation this morning.
Although the presentation didn't contain any material information, it does give investors a thorough breakdown of Nearmap's plans over the coming years.
Pleasingly, management appears confident that its growth will accelerate thanks to its recent capital raising and new growth initiatives. So much so, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
One key driver of growth is expected to be the roll out of the HyperCamera3 system. This will expand coverage at higher fidelity and enable the expansion into new geographical markets.
Furthermore, it is expected to create the world's first fourth generation capture technology and extend its technological lead over the competition.
Global domination?
Another key takeaway from the presentation was that management believes Nearmap is uniquely positioned for a global opportunity.
This is thanks to its industry leading product, scalable subscription business model, and passionate and specialist team.
At present, the global aerial imagery market is estimated to be worth US$10.1 billion a year. This is notably greater than the $106.4 million of ACV the company reported in FY 2020.
Clearly, Nearmap has a very long runway for growth over the next decade.
One broker that is very positive on its prospects is Citi. Last month its analysts put a buy rating and $3.15 price target on Nearmap's shares. This price target implies potential upside of over 17% even after today's strong gains.
