JP Morgan raised its investment opinion on MapInfo (MAPS) to overweight from neutral, citing the application software company's value.
Analyst Paul Coster said he believes small cap technology investors should add positions in the stock ahead of MapInfo's fourth quarter fiscal year 2005 (ending September) results. He sees MapInfo as on track for 14 cents in earnings per share for the fourth quarter on $40.4 million in revenue. In his opinion the company's enterprise information technology spending remains solid, while its revenue visibility is enhanced by a shift to larger scale contracts and consulting relationships. Coster looks for 3-year earnings per share from 2005 through 2008 compounded annual growth rate of 20% on revenue CAGR of 11%. He's trimming his fiscal year 2006 (ending Septempber) earnings per share estimates by a penny to 62 cents, to factor in a 36% tax rate. Coster initiated a 73 cent fiscal year 2007 earnings per share estimate.