The TechnologyOne Ltd (ASX: TNE) share price was a positive performer on Wednesday.
At one stage, the enterprise software company's shares rose 4% to a record high of $13.60.
When the TechnologyOne share price hit that level, it was up an impressive 67% in 2021.
Why did the TechnologyOne share price shoot higher?
Investors were bidding the TechnologyOne share price higher today after it became the subject of a bullish broker note out of Bell Potter.
According to the note, the broker has retained its buy rating and lifted its price target on the company's shares to $15.00.
This means that there's still potential upside of over 10% for the TechnologyOne share price despite its strong gains this year.
What did the broker say?
Bell Potter appears confident that TechnologyOne will deliver a strong full year update next week.
It commented: "Technology One reports its FY21 result next Tuesday and, given there has been no update to the market, it is almost certain the company will report within the guidance range. What is perhaps of more interest, therefore, is some of the key stats or numbers Technology One will report as these will provide an indication of the underlying condition of the company and also a guide towards the short to medium term growth outlook."
The broker also listed a few items that it feels investors should look out for with the company's result.
"In our view the key areas to focus on are: 1. SaaS ARR growth: Guidance is 35%+ growth, a higher number will signal strong conversion of on premise customers to SaaS; 2. On premise – initial licenses: Guidance is $20m, a lower number will increase the quality of the result; and 3. Cash flow: Guidance is cash flow generation will equate to c.80% of NPAT and we forecast 82%, an even higher number will increase the quality of the result," it added.
"We see the result next week as a potential catalyst with some of the key metrics indicating a quality result and positive outlook," Bell Potter concludes.
