Markets Live, Monday 10 May, 2021

 Markets Live, Monday 10 May, 2021

Nearmap still has some fans out there despite the recent legal action by US rival Eagleview which sent its share price crashing to a on-year low of $1.67 on Friday.

Morgan Stanley retained its Overweight recommendation and $3.20 target price, saying the current share price materially discounts its US business compared to its Australasian operation.

Aerial mapping has become a lucrative business. Credit:Nearmap

“On a SOTP (sum-of-the-parts) basis, we value Nearmap’s ANZ business at $666mn… the enterprise value is $740mn, implying a modest $74mn for the North American business or 1.4 times 2020-21 estimated enterprise value to Sales,” analysts wrote in a note to clients.

“Even assuming a bearish legal outcome affecting both regions’ operating performance, plus a significant cash outflow for damages (unspecified claim to date), the current price still implies a much lower value for north America versus Australia/New Zealand…

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