The Xero Limited (ASX: XRO) share price is having a very strong day on Wednesday.
In afternoon trade, the cloud accounting platform provider’s shares are up 6% to $108.20.
This means the Xero share price is now up 9% over the last two trading sessions.
Why is the Xero share price racing higher?
The Xero share price is rising today amid a rebound in the tech sector and a bullish broker note out of Jefferies.
In respect to the former, at the time of writing, the S&P ASX All Technology index is up a sizeable 3.1% following a solid night on Wall Street’s tech-focused Nasdaq index.
As for the latter, this morning Jefferies retained its buy rating and $139.09 price target on the company’s shares. This implies potential upside of almost 29% for investors over the next 12 months.
What did the broker say?
Jefferies doesn’t believe the current Xero share price factors in the company’s strong growth potential in the massive US market. This follows industry feedback which is pointing to increasing popularity from accountants and small to medium sized businesses.
Overall, the broker is fan of Xero’s North American strategy and highlights its market opportunity of 33 million small to medium sized businesses. This compares to its current global subscriber base of 3 million.
The post The Xero share price is up 9% in just two days appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Wednesday
- 3 ASX shares primed to bounce back: expert
- Growth will be back! Expert picks 7 ASX shares to buy now
- 2 beaten down ASX growth shares analysts believe are great value
- 2 ASX tech shares to buy now for DIRT CHEAP: experts
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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