The Nitro Software Ltd (ASX: NTO) share price is storming higher for a second day in a row.
In afternoon trade, the document productivity software company's shares are up 10% to $1.55.
This means the Nitro share price is now up approximately 35% in the space of just two weeks. Though, its shares are still down by the same margin year to date.
Image source: Getty Images
Why is the Nitro share price rising?
A number of beaten down ASX tech shares are rising again on Wednesday after another strong night on Wall Street's tech focused Nasdaq index.
In addition, a recent note out of Goldman Sachs reveals that its analysts believe Nitro's shares have been severely oversold, creating a buying opportunity for investors. This could be giving its shares an added boost today.
According to the note, the broker has a buy rating and $2.60 price target on its shares. This suggests that there's still potential upside of 68% for the Nitro share price despite its recent rally.
Commenting in February, Goldman highlighted the favourable risk/reward on offer with its shares after significant weakness in the preceding three months.
It said: "Nitro is down ~50% since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro's potential, in our view."
In respect to its growth assumptions, Goldman believes the company can increase its US$34 billion total addressable market penetration from 0.15% to 1.4% by FY 2040. This implies a massive 9x uplift to Nitro's current revenue base.
