The Nearmap Ltd (ASX: NEA) share price was one of the stronger performers on the ASX today. By market close, Nearmap shares were trading 6.56% higher at $2.03.
This means that over the past month, the aerial imagery specialist’s shares have gained more than 15% after being heavily sold off in May.
With no news out of the company today, we take a closer look at what could be pushing Nearmap shares higher lately.
Quick take on Nearmap
Founded in 2007, Nearmap is an Australian aerial technology and location data company. The group provides high-resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools to its many customers.
Nearmap operates in Australia and New Zealand, as well as the United States and Canada.
How is Nearmap performing?
Nearmap’s last financial update came after market close on 4 May and revealed it had increased its annual contract value (ACV) guidance. Investors were pleased with the company’s forecast ACV of between $128 million to $132 million, sending the Nearmap share price shooting around 15% higher the following day. But later that day, Nearmap shares were placed in a trading halt pending a further announcement.
On the morning of 6 May, Nearmap advised the market it had become aware of a complaint from the United States District Court. The complaint alleged that Nearmap’s US subsidiary had infringed on a competitor’s roof-estimation technology. However, Nearmap said that the allegations were without merit and that it takes intellectual property rights and patent protection seriously.
The concerning news sent shockwaves through the Nearmap share price, which plummeted to a 52-week low of $1.62 over the following couple of weeks.
Since then, the company has been on a quiet front, with investors slowly pushing Nearmap shares back to around their March levels.
A broker note also came from Citi in the middle of May indicating a price target of $2.00 for Nearmap shares. It seems shareholders are largely valuing the company in line with the global investment bank’s consensus.
About the Nearmap share price
Nearmap has faced a turbulent couple of months, leading its shares to record a 15% loss over the past 12 months. At current, the company’s share price is sitting within the lower end of its 52-week range of $1.62 to $3.22.
On valuation grounds, Nearmap commands a market capitalisation of roughly $1 billion, with more than 496 million shares on issue.
The post Nearmap (ASX:NEA) share price continues to rise, up 7% today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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