Jamf Holding (JAMF – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Koji Ikeda from Bank of America Securities remains neutral on the stock and has a $22.00 price target.
Geoff Meacham has given his Hold rating due to a combination of factors related to Jamf Holding’s recent announcement of workforce reductions and the absence of updated financial guidance. The decision by Jamf to reduce its workforce by approximately 6%, affecting 180 roles, is projected to enhance the company’s operating margins by realizing annualized cost savings. Meacham estimates these savings could be around $45 million. Despite the expected one-time costs of $6.6 to $8.2 million from this reduction, which will likely be incurred in the first quarter of 2024 with the plan completed by the end of the second quarter, the improvements are seen as a commitment by the company to profitable growth.
Additionally, Meacham has predicted an increase in EBIT margin expansion as a result of the workforce optimization. With assumptions about compensation and the balance between cash and stock, he forecasts a non-GAAP savings of $36 million annually, leading to substantial EBIT margin expansion in the subsequent two years. However, the lack of a reiteration of 2023 guidance or comments on 2024 outlook in the company’s filing has added a layer of uncertainty that could imply a potential miss in expectations or a slower revenue growth projection than what analysts have estimated. This uncertainty warrants a cautious stance until further information is provided in the upcoming fourth-quarter earnings call, which is why a Hold rating has been maintained, with no changes to revenue estimates but an increase in profitability forecasts.
In another report released yesterday, Craig-Hallum also assigned a Hold rating to the stock with a $19.00 price target.
JAMF’s price has also changed slightly for the past six months – from $21.460 to $19.400, which is a -9.60% drop .
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Jamf Holding (JAMF) Company Description:
Jamf Holding Corp is the standard in Apple Enterprise Management, and its cloud software platform is the vertically focused Apple infrastructure and security platform. The company helps organizations, including businesses, hospitals, schools and government agencies, connect, manage and protect Apple products, apps and corporate resources in the cloud without ever having to touch the devices. It sells its Software-as-a-Service, or SaaS, solutions via a subscription model, through a direct sales force, online and indirectly via its channel partners, including Apple. The company operates in The Americas; Europe, the Middle East, India, and Africa; and Asia Pacific.
Read More on JAMF:
- Jamf Holding Announces Costly Workforce Reduction Plan
- Jamf to Report Fourth Quarter 2023 Financial Results on February 27, 2024
- #SocialStocks: Instagram cuts jobs amid Meta pivot to AI focus
- Jamf kicks off 2024 with unique market proposition as the only security and management platform for the Apple ecosystem
- Jamf Holding says beginning 2024 holding ‘market-leading’ position
