Xero share price rises 8%: Can it keep climbing?

Software as a Service

Software as a Service

The Xero Limited (ASX: XRO) share price has been a positive performer today.

The cloud accounting platform provider’s shares were up as much as 8% to $89.28 at one stage.

The Xero share price has since pulled back a touch but remains up over 5% to $87.35 at the time of writing.

Why is the Xero share price rising today?

Investors have been bidding the Xero share price higher today amid a rebound in the tech sector.

This follows a particularly strong night on Wall Street after investors started to bet that markets have now bottomed. This improved investor sentiment is being driven by the ongoing US reporting season, which has seen stronger-than expected corporate earnings.

The tech sector has been benefiting most, with the S&P/ASX All Technology Index rising by a sizeable 4% at the time of writing.

Given how a large number of tech shares, such as Xero, have been beaten thoroughly down this year, investors appear to be piling in on the belief that there are bargains galore in the sector.

And it isn’t hard to see why. Despite continuing its strong growth in FY 2022, the Xero share price is down 40% since the start of the year. That’s even after today’s gain.

Can its shares keep rising?

One leading broker that still sees plenty of room for the company’s shares to climb from here is Goldman Sachs.

A recent note reveals that its analysts have a buy rating and $113.00 on its shares.

Based on the current Xero share price, this implies potential upside of almost 27% for investors over the next 12 months.

The post Xero share price rises 8%: Can it keep climbing? appeared first on The Motley Fool Australia.

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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. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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