Why did the Fineos share price roar 15% higher today?

This tech share was a strong performer on Tuesday…

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The Fineos Corporation Holdings PLC (ASX: FCL) share price was in fine form on Tuesday.

The insurance industry software provider’s shares rose 15% to $1.61.

This means the Fineos share price is now up 24% since this time last week.

Why is the Fineos share price charging higher?

Investors have been bidding the Fineos share price higher following a rebound in the tech sector and some positive broker notes.

In respect to the former, the S&P/ASX All Technology Index rose over 2% on Tuesday after investor sentiment improved in the sector.

As for the latter, both Goldman Sachs and Macquarie have been talking positively about Fineos over the last week.

While Goldman Sachs only initiated coverage on the company’s shares with a neutral rating, its price target of $1.65 is still higher than where its shares are trading even after these strong recent gains.

Goldman’s analysts “see Fineos as well positioned to benefit from the long-term structural tailwinds of insurance industry digitisation and shift to cloud software.”

Over at Macquarie, its team are even more positive. Last week the broker put an outperform rating and $2.89 price target on the company’s shares. This implies over 80% upside for the Fineos share price from current levels over the next 12 months.

Macquarie believes that Fineos will outperform its peers in respect to software revenue growth. Yet, despite this, it notes that the company’s shares still trade at a large discount to them.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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