Morgan Stanley picks 3 emerging stocks to buy from the reporting season, page-2

Re, Morgan Stanley

Morgan Stanley thinks this small cap stock is about to take off

Brendon Lau | May 3, 2018

Don’t let the drop in the share price of Nearmap Ltd (ASX: NEA) fool you. Morgan Stanley is tipping a turnaround in the next few weeks after management reaffirmed its bullish outlook for the current half of the financial year.
That has not stopped the stock from re-testing its three-month low of 89 cents as it shed 1% in value following its strong rally over the past year that has pushed Nearmap up 82% compared with the relatively paltry 4.5% gain by the All Ordinaries.



Morgan Stanley slaps $1.30 share price target on Nearmap Ltd

Tim Katavic | January 31, 2018


Despite the negative sentiment that has pushed many stocks into the red on the Australian market today, aerial mapping company Nearmap Ltd(ASX:NEA) has bucked the trend with its share pricing rising 4% to 72 cents in morning trade.
What happened?
The bump in the share price may be attributed to a broker note issued by Morgan Stanley this morning. Morgan Stanley has initiated coverage on Nearmap with an overweight rating and a price target of $1.30, inferring an 88% gain on yesterday’s closing price. After a disappointing 2017, Nearmap’s shares have now gained 20% in 2018 as the market has repriced the stock in reaction to the strong growth the company is exhibiting in Australia and the U.S.
Earlier this month, the company announced an impressive set of growth numbers in annualised contract values (ACV). Group ACV increased from $41.3 million to $54.2 million as at 31 December 2017. Nearmap’s Australian division’s ACV rose from $37.0 million to $43.3 million, whilst the U.S. division saw ACV rise from $US3.1 million to $US8.5 million. Attention will now turn towards the company’s release of its half yearly earnings report on February 21.