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On Wednesday, JPMorgan analysts continued to endorse an Overweight rating for Jamf Holding Corp. (NASDAQ:JAMF) with a consistent price target of $15.00, representing about 32% upside from the current trading price of $11.36. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $13 to $27. The financial institution’s analysis followed Jamf’s first-quarter earnings for 2025, which surpassed expectations and prompted an upward revision of the company’s annual forecast. The positive adjustment reflects both a prudent approach to organic growth drivers and a conservative estimate of contributions from the recent acquisition of Identity Automation.
Jamf’s quarterly performance featured a modest earnings beat, driven by higher-than-expected revenue from strong demand across various sectors, notably Healthcare, Financial Services, and Education. The latter sector remains a significant part of Jamf’s customer base, despite a lower average selling price compared to Commercial verticals. InvestingPro data shows the company maintains an impressive gross profit margin of nearly 80%, with revenue growth of 11.9% over the last twelve months. The company’s overall financial health score stands at 2.09, rated as "FAIR" by InvestingPro’s comprehensive analysis system. Revenue growth translated into improved margins and earnings per share, with operating leverage identified as the key factor behind the bottom-line enhancement.
Looking forward, the acquisition of Identity Automation, completed in April 2025, is expected to be a substantial growth catalyst for Jamf. It is projected to be beneficial to both revenue and margins, particularly in the second half of the year when its influence on the Education sector becomes more pronounced. Despite the optimistic outlook, Jamf has cautiously maintained its full-year 2025 guidance, balancing the potential uplift from Identity Automation with a steady expectation for underlying revenue growth amid a challenging macroeconomic environment.
JPMorgan’s outlook also acknowledges the potential for Jamf to outperform expectations if Identity Automation expands successfully into higher average selling price Commercial verticals such as Healthcare or Retail. Nevertheless, the company is now navigating foreign exchange headwinds due to a shift towards local currency billing in international markets, adding complexity to financial forecasting.
Despite these challenges, Jamf is committed to meeting the Rule of 40—a financial metric balancing growth and profitability—by the end of 2026. JPMorgan suggests that exceeding acquisition performance and sustained demand could offer additional room for a positive reassessment of Jamf’s stock value. With a market capitalization of $1.5 billion and projected revenue growth of 8% for FY2025, the company shows promising fundamentals. Discover more detailed insights and 12 additional ProTips for JAMF with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering what really matters for smarter investment decisions. In light of the recent developments, JPMorgan has increased its revenue projections for fiscal years 2025 and 2026, leading to enhanced earnings per share estimates of $0.80 and $1.00 for each respective year, up from previous forecasts of $0.75 and $0.95. The firm’s Dec-25 price target for Jamf remains unaltered at $15.00.
In other recent news, Jamf Holding Corp. has announced its acquisition of Identity Automation for approximately $215 million in cash. This strategic move is expected to enhance Jamf’s cybersecurity offerings by integrating Identity Automation’s identity and access management capabilities into its platform. The acquisition, anticipated to close by the end of the second quarter of fiscal year 2025, is projected to positively impact Jamf’s revenue and non-GAAP operating income. In related developments, Needham has maintained a Buy rating with a $25 price target for Jamf, viewing the acquisition as a strategic expansion into new markets such as retail and transportation.
Meanwhile, JPMorgan has adjusted its outlook on Jamf, lowering the price target from $20 to $18 while retaining an Overweight rating. This adjustment reflects a more cautious stance due to projected revenue growth slowdown and recent tech industry layoffs. Despite these challenges, Jamf’s core subscription business shows signs of stabilization, with Annual Recurring Revenue growth projected at 8% for 2025. Mizuho (NYSE:MFG) has also reiterated an Outperform rating with an $18 price target, emphasizing Jamf’s competitive edge in the market despite macroeconomic challenges.
Additionally, Jamf has announced upcoming changes to its board of directors, with Virginia Gambale and Charles Guan deciding not to stand for re-election. These board changes, filed in a Form 8-K with the SEC, have drawn attention from investors and stakeholders due to potential impacts on the company’s strategic direction.
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