Needham lowers Jamf stock price target to $20 on strategic shift

Published 17/07/2025, 12:56
Needham lowers Jamf stock price target to $20 on strategic shift

Investing.com - Needham lowered its price target on Jamf Holding Corp. (NASDAQ:JAMF) to $20.00 from $25.00 on Thursday, while maintaining a Buy rating on the stock. Currently trading at $8.36, JAMF appears undervalued according to InvestingPro analysis, with analyst targets ranging from $12 to $27.

The price target reduction follows Jamf’s announcement of a strategic reallocation of investments, which includes a 6.4% reduction in workforce. The company is shifting resources to focus more heavily on the enterprise market and artificial intelligence investments. With a robust gross profit margin of 79.69% and revenue growth of 10.75%, the company shows strong fundamentals to support this strategic pivot.

Needham believes Jamf’s enterprise market focus will allow the company to capture a greater share of the most profitable segment of device management. The firm also notes that increased AI investments should support productivity gains across the enterprise.

The research firm indicated that servicing SMB clients has become too expensive relative to customer lifetime value, and that more automation is needed to drive productivity. Jamf plans to leverage AI investments to enhance productivity in both internal operations and customer-facing applications.

Needham has updated its Annual Recurring Revenue (ARR) estimates for Jamf to include the impact of the Identity Automation acquisition. The company is scheduled to report earnings on August 7th. For detailed analysis and more insights, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Jamf Holding Corp. announced it expects to exceed the high end of its second-quarter guidance, with projected revenue between $167.5 and $169.5 million and non-GAAP operating income between $29.5 and $30.5 million. The company is implementing a strategic reinvestment plan, which includes a workforce reduction of approximately 6.4% to enhance its go-to-market strategy and boost AI investments. Jamf has also unveiled new AI and security enhancements, including updates to its AI Assistant and the introduction of Compliance Benchmarks in Jamf Pro, aimed at improving device management and security.

JMP Securities maintained a Market Outperform rating for Jamf, with a $27 target, following the company’s acquisition of a $400 million incremental term loan facility. JPMorgan continues to rate Jamf as Overweight with a $15 target, noting a modest earnings beat and increased revenue forecasts, partly due to the acquisition of Identity Automation. The company’s board of directors is undergoing changes, with Virginia Gambale and Charles Guan deciding not to stand for re-election at the upcoming annual general meeting.

These developments come as Jamf focuses on strengthening its operations and market presence, leveraging strategic initiatives and financial flexibility. Investors are closely monitoring the company’s progress, especially in light of the recent board changes and strategic adjustments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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