The Nearmap Ltd (ASX: NEA) share price was a strong performer on Wednesday and stormed higher again.
The aerial imagery technology and location data company’s shares finished the day 7% higher at $2.77.
This means the Nearmap share price is now up 34% since this time last month. And that’s despite the company being the target of a short seller attack last week.
That short seller attack may go down as one of the least successful we’ve seen in recent times.
Why is the Nearmap share price racing higher?
Investors have been buying Nearmap shares since it released a comprehensive response to the short seller report and its half year results.
In respect to the latter, Nearmap reported annual contract value (ACV) of $112.2 million on a reported basis and $116.7 million on a constant currency basis. This represents a 16.1% and 21% increase, respectively, over the prior corresponding period.
A key driver of this growth was its North American business, which delivered record ACV for the half.
Anything else?
Also supporting the Nearmap share price has been the reaction to its results by brokers.
As I mentioned here yesterday, analysts at Goldman Sachs were pleased with its results and retained their buy rating and lifted their price target to $2.95.
Goldman Sachs isn’t alone in rating its shares as a buy. Analysts at both Citi and Morgan Stanley responded to its results by reiterating their buy and overweight ratings.
Coincidentally, both brokers have price targets of $3.10 on Nearmap’s shares. This price target implies potential upside of approximately 12% over the next 12 months.
So, although the Nearmap share price has been on fire over the last 30 days, based on the views of these brokers, there appears to be room for its shares to run even higher from here.
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More reading
- Where next for the Nearmap (ASX:NEA) share price?
- ASX 200 rises, JB Hi-Fi profit soars, Altium drops
- ASX 200 up 0.8%: Nearmap jumps, Bendigo and Adelaide Bank impresses
- Nearmap (ASX:NEA) share price soars 14% after response to short sellers
- Why Atomos, Bendigo and Adelaide Bank, Coca-Cola Amatil, & Nearmap are racing higher
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia 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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