The Nitro Software Ltd (ASX: NTO) share price is among the best performers on the All Ordinaries index on Tuesday.
In afternoon trade, the document productivity software company’s shares are up 9% to $1.44.
Why is the Nitro share price surging higher?
Investors have been bidding the Nitro share price higher today amid a rally in the tech sector. This follows a strong night on the tech-focus Nasdaq index on Wall Street.
It isn’t just Nitro that is recording a strong gain. The Block Inc (ASX: SQ2) share price is playing a key role in driving the S&P ASX All Technology index 2.5% higher today with a gain of 7% this afternoon.
This mirrors an equally strong gain by the payments giant’s NYSE listed shares during overnight trade.
Is Nitro good value?
As I mentioned here yesterday, Goldman Sachs sees a lot of value in the Nitro share price at the current level. It recently put a buy rating and $2.60 price target on the company’s shares.
Goldman believes the market is underestimating Nitro’s growth potential as a challenger in a US$34 billion total addressable market across PDF, e-signing, and workflows.
It commented: “Nitro is down ~50% since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro’s potential, in our view. We are positive on Nitro’s structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew.”
The post Why is the Nitro Software (ASX:NTO) share price rocketing 9% higher? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Nitro right now?
Before you consider Nitro, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nitro wasn’t one of them.
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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. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Nitro Software Limited. 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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