Domo signs strategic collaboration agreement with AWS for AI solutions
On Thursday, JPMorgan began coverage of Jamf Holding Corp. (NASDAQ: NASDAQ:JAMF), currently trading at $15.45 with a market capitalization of $1.98 billion, with an Overweight rating, setting a price target of $20.00. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model. The firm highlighted Jamf’s strong positioning to capitalize on the growing use of Apple (NASDAQ:AAPL) devices within enterprises. JPMorgan’s analysis suggests that despite recent growth deceleration due to slower enterprise hiring and spending on device management, they anticipate a stabilization in revenue growth in FY25, which could potentially lead to a re-acceleration in FY26.
The firm believes that this stabilization could act as a catalyst for a rebound in the company’s valuation multiple. Over the past three years, Jamf has experienced a consistent decline in its valuation multiple due to the deceleration in growth. The company maintains strong fundamentals with a 79.59% gross profit margin and revenue growth of 13.85% over the last twelve months. With the current valuation at an "inexpensive" 3x EV/Sales and 24x P/E, JPMorgan sees significant potential for a re-rating.
JPMorgan’s price target of $20.00 represents a 29% increase from current levels. The target is based on conservative multiples, suggesting that there could be even more upside if Jamf’s revenue growth re-accelerates beyond expectations. The firm’s positive outlook is based on the premise of a normalization in the macroeconomic environment leading to steadier revenue growth for Jamf.
In their commentary, JPMorgan pointed out that the headwinds faced by the enterprise sector in recent years have resulted in a slowdown in growth for companies like Jamf. However, they remain optimistic about the company’s future performance, expecting a turnaround as market conditions stabilize.
The firm’s endorsement of Jamf’s stock comes with the expectation that the company will continue to be the leading technology solution for device management and security, especially as the adoption of Apple devices in enterprise settings increases. This specialized focus, according to JPMorgan, positions Jamf favorably in its market niche. InvestingPro data shows the company maintains a FAIR Financial Health Score of 2.22, with analyst price targets ranging from $17 to $30. Subscribers can access the comprehensive Pro Research Report for deeper insights into Jamf’s market position and growth potential.
In other recent news, Jamf, an Apple device management and security company, reported a 12% year-over-year increase in revenue and a total Annual Recurring Revenue (ARR) of $635 million in its third quarter 2024 earnings call. The company’s non-GAAP operating income rose to $27.7 million, reflecting a 17% margin and an 800 basis point improvement from the previous year. Strategic partnerships with Microsoft (NASDAQ:MSFT) and Okta (NASDAQ:OKTA) were announced, aimed at enhancing product offerings and market alignment.
Furthermore, Jamf’s key products, Jamf Pro and Jamf School, have been granted StateRAMP Authorized status, indicating they have met all necessary security controls for organizations with high-security needs. This status is the highest level of certification within the StateRAMP program, a security framework tailored for cloud services used by state and local governments, as well as educational institutions.
Additionally, Jamf has announced the availability of its flagship product, Jamf Pro, on the Microsoft Azure cloud platform. The company has also achieved the top-tier partner designation within Microsoft Azure’s IP co-sell program, reflecting a deepening collaboration between the two tech giants.
These are recent developments in Jamf’s ongoing mission to offer secure and user-friendly Apple management solutions that respect personal privacy and are trusted by organizations. The company’s products are now listed on the StateRAMP Authorized Product List and are purchasable through the Azure Marketplace.
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