Why the Livetiles Ltd (ASX:LVT) share price is storming higher today

The Livetiles Ltd (ASX:LVT) share price has been a strong performer on Monday after the release of a positive broker note…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the best performers on the Australian share market on Monday has been the Livetiles Ltd (ASX: LVT) share price.

At one stage the technology company's shares were up as much as 14% to 44.5 cents. They have since given back some of these gains, but still sit 8% higher at 41.5 cents.

Why is the LiveTiles share price storming higher?

The LiveTiles share price was given a major boost today after a leading broker initiated coverage on the workplace platform provider with a positive view.

According to a note out of Citi, it has given LiveTiles a (high risk) buy rating with a sizeable 56 cents price target on its shares.

Even after today's strong gain this still implies potential upside of almost 35% for its shares over the next 12 months.

Citi has made the move on the back of LiveTiles' arrangement with key Microsoft sales and marketing vendor N3, believing that it has the potential to be material.

Earlier this month LiveTiles announced a partnership with the New York government to establish a North American Intelligent User Experience (IUX) Hub in Rochester, New York.

The Hub will house a team of 60 new staff members, more than doubling its current sales and marketing footprint, and is part of its strategic relationship with N3 which sees the latter supply dedicated employees.

Management expects the Hub to be integral to driving its North American expansion. And with N3 on board they could be spot on.

N3 is the leading outsourced sales and marketing execution vendor for Microsoft's Azure and Dynamics platforms and serves a global client base including SAP, IBM and Cisco.

It has been instrumental in the implementation and execution of Microsoft's integrated cloud sales strategy for the past six years, delivering significant revenue growth for Microsoft and its partners.

LiveTiles' management team expect similar success with their relationship. It has previously stated its belief that N3's expertise in the Microsoft ecosystem and sophisticated sales and marketing platform will generate strong and highly scalable customer and revenue growth for LiveTiles.

Should you invest?

I think that LiveTiles is one of the most exciting small cap tech shares on the Australian share market.

But as Citi's rating indicates, it is a high risk investment and largely unsuitable for the average investor. But if you can tolerate the risk, then it might be worth considering a small investment in the company.

If not, then tech shares such as Integrated Research Limited (ASX: IRI) and Technology One Limited (ASX: TNE) may be more suitable.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integrated Research Limited. 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 Scott Phillips.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »