On Thursday, BofA Securities adjusted its outlook on Jamf (NASDAQ:JAMF) Holding Corp. (NASDAQ:JAMF), a company specializing in Apple (NASDAQ:AAPL) device management solutions, by increasing its price target to $23 from $21 while sustaining a Neutral rating on the stock.
The decision came after BofA Securities' analysts attended Jamf's first Investor Day, where they gained a more optimistic view of the company's prospects to increase its market share in the Apple device management sector. The analysts acknowledged the company's potential but also noted concerns due to persistent demand challenges in Jamf's two largest customer verticals, technology and K-12 education, which together account for 46% of the company's Annual Recurring Revenue (ARR).
The analysts pointed out that these pressures could lead to volatility in financial modeling and potentially limit the upside of the stock if the headwinds continue longer than expected. Despite the risks, BofA Securities recognized the company's new financial targets for 2025-26, which suggest a revenue growth reacceleration. However, they also mentioned that achieving comfort with these targets might require a few quarters of solid execution, especially given that the guidance for 2024 indicates a slowdown in revenue growth.
The revised price target of $23 reflects an updated forecast that incorporates the guidance provided by Jamf. The Neutral rating indicates that, while the analysts see positive aspects in Jamf's strategy and market position, they remain cautious due to the aforementioned risks associated with the company's key customer segments.
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