Minnesota-based Jamf Holdings (JAMF) is a software company primarily focused on serving organizations that use Apple (AAPL) products. Its customers include businesses, schools, and government agencies. It ended 2021 with more than 60,000 customers running 25.6 million devices. These include most of the 10 largest companies ranked on the Fortune 500 and all of the top 10 global universities.
For Q3 2021, Jamf reported a 36% year-over-year increase in revenue to $95.6 million, surpassing the consensus estimate of $93.7 million. It posted EPS of $0.01, which declined from $0.07 in the same quarter in the previous year but met the consensus estimate.
The company anticipates revenue in the range of $99 million to $101 million for Q4, while Wall Street is looking for revenue of $98.7 million. For full-year 2021, Jamf expects to report revenue in the band of $361.5 million to $363.5 million, against the Wall Street expectation of $359.6 million.
With this in mind, we used TipRanks to take a look at the newly added risk factors for Jamf.
Risk Factors
According to the new TipRanks Risk Factors tool, Jamf Holding’s main risk category is Finance and Corporate, representing 43% of the total 81 risks identified for the stock. Ability to Sell and Tech and Innovation are the next two major risk categories at 21% and 15% of the total risks, respectively. Jamf recently updated its profile with seven new risk factors.
The company informs investors that its 2025 notes indenture contains conditions that may hurt its prospects. For example, Jamf would be required to repurchase the notes for cash before maturity or increase the conversion rate if there is a fundamental change in the company. Jamf explains that the effects of those provisions may delay or prevent a takeover of the company, even if such a transaction would be beneficial to investors.
In connection with its 2026 notes, Jamf entered hedging positions with certain financial institutions. The company explains that the positions are designed to offset excess cash payments it may be required to make in relation to the notes. Additionally, the positions are meant to reduce the potential dilution to the stock resulting from the conversion of the notes. However, the company cautions that there may be issues with the hedging arrangements. Jamf mentions that the financial institutions involved could become insolvent, leaving it as an unsecured creditor.
The Finance and Corporate risk factor’s sector average is 48%, compared to Jamf’s 43%. Jamf’s shares have declined 17% over the past 12 months.
Analysts’ Take
Mizuho analyst Gregg Moskowitz recently maintained a Buy rating on JAMF stock but lowered the price target to $43 from $48. Moskowitz’s reduced price target still suggests 40.29% upside potential. The analyst cited inflation concerns and a rising interest rate environment for cutting his price targets for most software companies.
Consensus among analysts is a Strong Buy based on 7 Buys and 2 Holds. The average Jamf Holding price target of $48.78 implies 59.15% upside potential to current levels.
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