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GetSwift Ltd shares rocket on game-changing deal

One of the biggest movers on the Australian share market today has been the GetSwift Ltd (ASX: GSW) share price.

In late morning trade the exciting logistics software platform provider’s shares are up 32% to $2.29.

Incredibly, this means its shares have now more than doubled in value in under a month.

Why have its shares rocketed higher?

This morning GetSwift announced that it has signed an exclusive commercial five-year agreement with N.A. Williams which has the potential to generate over 1 billion transactions per year.

N.A. Williams is the leading representative group for the North American Automotive Sector and provides merchandising services, research, training, marketing, consulting, call centre, and sales to the North American auto care and commercial vehicle industry.

Whilst the fulfilment of this vertical will take up to 19 months due to the project scope, size, and complexity of its channel partners, if it is fulfilled it will be a game-changer for the company.

Management estimates that the five-year agreement will increase its recurring revenues by more than $138 million per year once fully captured.

Considering the information technology sector currently trades on an average of 4.5x sales, this deal alone could potentially justify a market cap of $621 million.

But the N.A. Williams deal isn’t the only one that could generate significant revenue in the future.

It is worth remembering that GetSwift has potentially lucrative deals with companies including Commonwealth Bank of Australia (ASX: CBA), Pizza Hut, Lion Nathan, and Takeaway.com subsidiary Vietnammm.

Should you invest?

Up until this morning I felt that GetSwift’s shares were starting to look a little expensive. But in my opinion this new agreement changes everything.

In light of this, I think there could still be significant upside for GetSwift’s shares over the next 12 months.

In my opinion GetSwift is up there with the likes of Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) as one of the best tech investment options on the Australian share market today.

Finally, here's one more exciting tech share that could be in the buy zone today.

Why Elon Musk's "secret weapon" was the most shorted share in Australia...

On 9 March, the visionary Tesla co-founder and CEO made a bold $63,000,000 to save a large swath of Australia. But in the process, he accidentally revealed the small Melbourne-based company that allows him to consistently make the impossible possible. At one point, this little understood company was actually the single most heavily shorted share in all of the ASX. Yet oddly enough, nine out of 10 analysts call it a screaming BUY! And that includes Motley Fool Australia.

We just isolated this company as Elon Musk's "secret weapon", and think it's dynamic run (up more than double after initially floating shares just two and a half years ago!) is only getting started. For the full story on this company, as well as how to get invested alongside us today, simply click here!

Motley Fool contributor James Mickleboro owns shares of GetSwift Ltd. The Motley Fool Australia owns shares of Altium and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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