The EML Payments Ltd (ASX: EML) share price is heading north today and is now trading 2.34% higher at $2.84.
It's been a difficult year to date for the payments solutions company, having erased 12% since trading resumed in January.
However, as ASX tech shares stage a comeback rally in March, EML has jumped on for the ride and is now 17% higher in that time.
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What's up with the EML share price lately?
As sentiment improves on the tech sector, EML has surged to be one of the top performers in the last two weeks.
Market pundits were also quick to back the company again after its expansion into the employee benefits market (EBM) in Europe.
The EBM is worth more than $88 billion globally and is expected to grow by $20 billion between 2021 and 2025, EML says. Europe represents around 35% of this market.
In a recent note, analysts at UBS reckon the deal is a positive one for the payments company, valuing EML at $4.55 per share in the process.
The move also hammered in Ord Minnett's investment thesis on the company. The broker is also valuing EML at a shade over $4 per share.
Ron Shamgar of TAMIM Asset Management — an owner of EML shares — also said the play was "a big win" for the payments solutions specialist.
Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has rallied hard in March and is now up 6% in the past month. However, zooming out, it is still down more than 16% this year to date.
EML has tracked the tech index closely and appears to be following suit with strengths in the wider sector.
As a result of this and the recent update, it appears investors are throwing their support behind EML once again.
EML share price snapshot
In the last 12 months, the EML share price has collapsed 42% and is down around 12% year to date.
However, as investors pile into growth and tech again, shares have rallied 17% in the previous month of trade.
The company has a market capitalisation of around $1 billion.
