Tech Group Nearmap Surges 8% Higher on Broker Note

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Shares of Nearmap Ltd [ASX:NEA] have increased by 8% to $3.96 per share after a broker note gave the company an ‘outperform’ rating.

Nearmap specialises in AI and 3D technology, providing high quality aerial imagery technology and data location. It has emerged from a tiny start-up to a tech giant with a market capitalisation of $1.65 billion over a 10-year period.

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Utopian tech future or 1984?

The latest gain comes after the company’s launch earlier this month of the Nearmap 3D Online and ‘Beta’ Artificial intelligence platform. The 3D product allows customers to ‘stream and export 3D imagery on demand and at scale’ in what they describe as a ‘fully-immersive 3D experience’.

According to the statement, the technology has the capacity to change the way industries will run in the future — especially urban planning, construction and real estate opportunities.

But the real drawcard is the first version of the new AI system. Nearmap has worked hard on its aerial imagery to update multiple datasets, which can be used to measure organisational changes in the environment — such as an increased number of solar panels or a slow-down in construction work.

It may sound like Big Brother, but such tech could potentially be hugely useful to a range of companies and governments across industries.

The AI is currently still at the experimental stage.

Is Nearmap a buy?

Nearmap has shown strong growth over the past year, rising nearly 282.6% in that time. Some investors may be wondering if the current price is too good to be true.

And while investors have so far shown their confidence in the company (which grew 45% over the last quarter), many will be loath to buy in case of a pull-back from the previous highs.

For now though, analysts at Macquarie Group seem to think there is more than enough opportunity for further growth.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

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About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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