Why is this ASX 200 tech stock crashing 11% today?

Iress Ltd (ASX: IRE) shares are falling heavily on Wednesday.

In morning trade, the ASX 200 tech stock is down 11% to $8.03.

Why is this ASX 200 tech stock crashing?

Firstly, it is worth noting that the financial company’s shares jumped yesterday afternoon before being placed in a trading halt.

That was driven by speculation that the ASX 200 tech stock could be a takeover target of US private equity giant Thoma Brava.

It isn’t a stranger to acquisitions on the Australian share market. At the end of December, the private equity firm acquired aerial imagery company Nearmap.

Is Iress getting acquired?

Unfortunately for speculators, as you might have guessed from the share price decline, the ASX 200 tech stock has not received an offer from Thoma Brava.

In response to a query from the Australian stock exchange about whether it was aware of takeover discussions, the company said:

No. Iress is not aware of any such information. In relation to the News Article, Iress is not in discussions or in receipt of a proposal in relation to a potential control transaction for Iress.

Should you buy the dip?

Most brokers aren’t overly bullish on this ASX 200 tech stock.

For example, Morgans has a hold rating and $8.60 price target on its shares at present. Whereas Macquarie has an outperform rating and $8.55 price target. This implies potential upside of approximately 6% for investors.

However, there is one broker that sees material upside potential.

Ord Minnett currently has a buy rating and $9.60 price target on its shares. This implies potential upside of 19.5% for investors over the next 12 months.

The post Why is this ASX 200 tech stock crashing 11% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Corporate Travel Management, Iress, Rio Tinto, and Woolworths shares are crashing
• 2 ASX 300 tech shares making huge moves on earnings updates

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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