This little ASX tech share is skyrocketing 120% amid a deal with $33 billion energy company

A big contract win is putting a rocket under this tech share.

| More on:
A man flies into the sky over a city building-scape with a rocket jet pack sketched onto his back representing the Imugene share price skyrocketing today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pointerra Ltd (ASX: 3DP) share price is having a sensational finish to the week.

At one stage today, the ASX tech share was up almost 120% to 21 cents.

The 3D geospatial data technology company's shares have eased back since then but remain up a solid 67% to 16 cents currently.

Why is this ASX tech share skyrocketing?

Investors have been scrambling to buy Pointerra's shares after it announced a major contract win.

According to the release, the company's existing customer, Entergy Corp (NYSE: ETR), has selected Pointerra's US Engineer, Procure & Construct (EPC) partners for its 10-year, US$15 billion grid resilience CAPEX Program.

Entergy is a US$21.9 billion (A$32.7 billion) Fortune 500 company that provides power to 3 million customers throughout Arkansas, Louisiana, Mississippi and Texas. The release notes that the Louisiana-based energy utility company plans to spend US$15 billion on an electric grid resilience CAPEX program.

The company's Pointerra3D product will be used to process and analyse 3D LiDAR and 2D imagery to build a digital twin of Entergy's electricity network. This will then allow Entergy and its EPC contractors to use Pointerra3D's world-first quick load electric grid assessment tools to rapidly assess and prioritise the works to be completed in the most cost-effective and efficient manner possible.

Over the term of the program, the ASX tech share will be paid a price per pole/structure inspected and analysed using Pointerra3D.

At present, the company expects that up to 4 million poles could be inspected and analysed using Pointerra3D during this time.

And while a rate has not been finalised for this program, management expects it to be similar to previous rates of between US$20 and $40 per pole. This suggests that the contract could be worth US$80 million to US$160 million over its life, with revenue expected to commence during FY 2024.

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 positions in and has recommended Pointerra. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Man pointing at a blue rising share price graph.
Earnings Results

This ASX 300 stock just jumped 12%! Here's why

The ASX 300 stock is impressing investors with its half-year earnings results.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Technology Shares

Why is the high-flying DroneShield share price crashing 20% today?

This tech share is running out of steam on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Technology Shares

Xero share price falls despite strategy update and new AI solution

This growing tech star has laid out its plans for the coming years.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Earnings Results

EML share price sinks on $12m half-year loss

EML grew its top line strongly but reported a loss after tax.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Technology Shares

Guess which ASX tech stock crashed 29% on its half-year results

Investors haven't responded positively to this results release.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Technology Shares

Guess which ASX 200 stock hit a record-high on 'strong' half-year result

This data centre operator delivered a strong result according to analysts.

Read more »

A man looks stunned as a cloud explodes from his head representing the CogState share price crashing today in
Earnings Results

Brainchip share price crashes 23% following another year of losses for ASX AI chipmaker

ASX AI chip maker Brainchip is under heavy selling pressure after releasing its 2023 results.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Technology Shares

4 ASX tech shares tumbling on results releases

These ASX tech stocks are taking a dive on Tuesday. But why?

Read more »