Citizens JMP lowers Jamf stock price target to $18 on mixed Q2 results

Published 08/08/2025, 10:12
Citizens JMP lowers Jamf stock price target to $18 on mixed Q2 results

Investing.com - Citizens JMP has lowered its price target on Jamf Holding Corp. (NASDAQ:JAMF) to $18.00 from $27.00 while maintaining a Market Outperform rating following the company’s second-quarter earnings report. According to InvestingPro data, analyst targets currently range from $10 to $27, with the stock trading at $7.33, suggesting significant upside potential. InvestingPro analysis indicates the stock is currently undervalued.

Jamf reported non-GAAP earnings per share of $0.18 for the second quarter of 2025, meeting consensus expectations. The company posted non-GAAP operating income of $33.5 million, exceeding the consensus estimate of $30.0 million, representing a 19% margin on total revenue. The company maintains a robust gross profit margin of 79.7%, according to InvestingPro data, demonstrating strong operational efficiency.

Total (EPA:TTEF) revenue reached $177 million, surpassing the consensus estimate of $169 million and reflecting 15% year-over-year growth, an improvement from 10% growth in the previous quarter. Billings totaled $205.6 million, exceeding consensus expectations of $175.8 million and showing 30% growth compared to 12% in the prior quarter.

Annual recurring revenue (ARR) reached $710 million, above the consensus estimate of $675 million, with 14% growth compared to 9% in the previous quarter. Security ARR growth accelerated to 40%, up from 17% in the previous quarter.

The company generated operating cash flow of $37.7 million and free cash flow of $36.9 million, both exceeding analyst expectations. Following the earnings release, Jamf stock rose 9% in after-hours trading, despite having decreased 48% year-to-date compared to a 7% increase for the Russell 3000. With a market capitalization of $967 million and an overall Financial Health score of FAIR from InvestingPro, which offers comprehensive analysis and 12+ additional ProTips about JAMF’s growth potential and market position, investors can access deeper insights through the platform’s detailed Pro Research Report.

In other recent news, Jamf Holding Corp. has announced a strategic workforce reduction of approximately 6.4% as part of a growth plan to enhance long-term performance and operational efficiency. The company anticipates charges of $11.0 to $12.5 million related to severance and associated costs, which are expected to be primarily incurred in the third quarter of 2025. Additionally, Jamf has introduced new advancements in its platform, featuring artificial intelligence enhancements and security tools aimed at improving Apple (NASDAQ:AAPL) device management in the workplace. These features include a "search skill" and "explain skill," both in beta, designed to aid IT administrators in device management and policy troubleshooting.

On the financial front, JMP Securities has maintained a Market Outperform rating for Jamf, with a price target of $27.00. This decision follows Jamf’s acquisition of a $400 million incremental term loan facility, amending its previous credit arrangement, and set to mature in 2029. Meanwhile, Needham has adjusted its price target for Jamf to $20.00 from $25.00, while keeping a Buy rating, in light of the company’s strategic reallocation towards the enterprise market and AI investments. These developments come as Jamf continues to navigate a challenging market, with its shares experiencing a 25% decline year-to-date.

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