Citizens reiterates Market Outperform rating on Jamf stock after strong Q3

Investing.com - Citizens has reiterated its Market Outperform rating and $18.00 price target on Jamf Holding Corp. (NASDAQ:JAMF) following the company’s better-than-expected third-quarter 2025 results released on Monday. With the stock currently trading at $12.87, InvestingPro data indicates Jamf is undervalued based on its Fair Value assessment, aligning with Citizens’ bullish outlook.

Jamf reported non-GAAP earnings per share of $0.25, exceeding the consensus estimate of $0.23. The company’s non-GAAP operating income reached $47 million, surpassing the consensus of $42 million, representing a 25.7% margin on total revenue of $183 million, which was above the consensus of $177 million and up 15% year-over-year. This performance continues Jamf’s solid revenue growth trajectory, with InvestingPro showing a 11.36% revenue increase over the last twelve months.

Billings for the quarter totaled $218 million, significantly higher than the consensus estimate of $186.4 million, reflecting 29% growth, slightly down from 30% in the previous quarter. Annual recurring revenue (ARR) reached $729 million, exceeding the consensus of $719 million, with growth accelerating to 15% from 14% in the previous quarter.

Security ARR growth showed particular strength, increasing to 44% from 40% in the previous quarter. The company also demonstrated strong cash generation with operating cash flow of $65.0 million and free cash flow of $63.9 million, both substantially exceeding consensus estimates of $39.8 million and $36.2 million respectively.

Despite these positive results, Jamf stock remains down 9% year-to-date (InvestingPro shows -8.4% precisely), contrasting with the Russell 3000 index’s increase of approximately 16% over the same period. Jamf is one of 1,400+ US equities covered by comprehensive InvestingPro Research Reports, which provide clear, actionable intelligence through intuitive visuals and expert analysis to help investors make smarter decisions.

In other recent news, Jamf has entered into a definitive agreement to be acquired by Francisco Partners for $13.05 per share, valuing the transaction at approximately $2.2 billion. This acquisition represents a premium of about 50% over Jamf’s volume-weighted average closing share price for the 90 days prior to the announcement. Additionally, Jamf’s RapidIdentity platform has secured a five-year contract with Ohio’s Higher Education Consortium, which includes 86 member institutions. This contract win has been positively received, with Citizens maintaining its Market Outperform rating and a price target of $18.00 on Jamf.

In further developments, Jamf has launched a beta version of its AI-powered mobile forensics tool, enhancing its Executive Threat Protection solution. This tool aims to streamline mobile forensic analysis for security teams. Needham continues to support Jamf with a Buy rating and a $20.00 price target, citing the company’s accelerating pace of product innovation. The firm highlighted Jamf’s Platform APIs as a key area of development that simplifies the developer environment. These recent activities underscore Jamf’s ongoing efforts in innovation and market expansion.

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