The company has acquired technology and IP from Pushpin, a deep learning and roof geometry insight provider, and existing customer of Nearmap. Morgan Stanley assesses the transaction and near-term financial impact are small.
However, the acquisition will allow the company to sell the acquired roofing geometry capability into its larger customer base in the US and globally.
Overweight rating, In-Line industry view and $4.20 target maintained.
Sector: Software & Services.
Target price is $4.20.Current Price is $2.59. Difference: $1.61 – (brackets indicate current price is over target). If NEA meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges – negative figures indicate an expected loss).