The Xero Limited (ASX: XRO) share price is having a sensational day.
At the time of writing, the cloud accounting platform provider's shares are up 9% to a four-month high of $84.16.
Why is the Xero share price surging today?
Investors have been scrambling to buy Xero shares today following a rebound in the tech sector after the US Federal Reserve hinted that its rate hikes could soon be coming to an end.
This saw the technology-focused Nasdaq index rise 2% overnight and the S&P/ASX All Technology Index rise 3.5% this afternoon.
In addition, the Xero share price may be rising more than most in the tech sector thanks to some recent broker commentary.
Earlier this week, Goldman Sachs added the company to its coveted conviction list with a buy rating and $109.00 price target. This suggests that its shares could still rise 30% over the next 12 months even after today's gain.
Its analysts commented:
We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL).
