On Thursday, RBC Capital adjusted its outlook on Jamf (NASDAQ:JAMF) Holding Corp. (NASDAQ:JAMF) shares, a leader in Apple (NASDAQ:AAPL) enterprise management, by raising the price target to $23 from $21, while reiterating an Outperform rating.
The adjustment follows the company's report of strong financial performance, which included a 14% growth in Annual Recurring Revenue (ARR) and a 15% increase in revenue. Additionally, Jamf achieved a 1000 basis point improvement in operating margin leverage.
The firm recognized the company's solid results as a "consistent, good first step" following an estimate reset in the previous quarter. Despite macroeconomic challenges, Jamf's continued innovation and strategic positioning for the upcoming replacement cycle were cited as key factors in its performance.
The company's guidance for the calendar year 2024 was deemed cautious yet appropriate, with expectations for revenue acceleration in the calendar years 2025 to 2026.
In a statement regarding the updated price target, the firm highlighted Jamf's execution: "Following the estimate reset last quarter, we think results were a consistent, good first step as key drivers are tracking as expected."
The firm also noted Jamf's resilience amid broader economic headwinds: "While macros remain a headwind, the company continues to innovate and remains well-positioned for the replacement cycle."
The raised price target reflects confidence in Jamf's business trajectory and its ability to maintain strong growth and margins. The firm's outlook suggests that Jamf's current strategies are effectively aligning with market opportunities and that its financial discipline is yielding positive leverage on operating margins.
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