The Xero Limited (ASX: XRO) share price is having a very strong day on Wednesday.
In afternoon trade, the cloud accounting platform provider's shares are up 6% to $108.20.
This means the Xero share price is now up 9% over the last two trading sessions.
Why is the Xero share price racing higher?
The Xero share price is rising today amid a rebound in the tech sector and a bullish broker note out of Jefferies.
In respect to the former, at the time of writing, the S&P ASX All Technology index is up a sizeable 3.1% following a solid night on Wall Street's tech-focused Nasdaq index.
As for the latter, this morning Jefferies retained its buy rating and $139.09 price target on the company's shares. This implies potential upside of almost 29% for investors over the next 12 months.
What did the broker say?
Jefferies doesn't believe the current Xero share price factors in the company's strong growth potential in the massive US market. This follows industry feedback which is pointing to increasing popularity from accountants and small to medium sized businesses.
Overall, the broker is fan of Xero's North American strategy and highlights its market opportunity of 33 million small to medium sized businesses. This compares to its current global subscriber base of 3 million.
