The ASX tech stock with 'a significant growth opportunity ahead'

This tech stock has been flying in recent times and a fund manager remains very positive.

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Over the last 12 months, a number of ASX tech stocks have delivered sensational returns for their shareholders.

The likes of Life360 Inc (ASX: 360), Nextdc Ltd (ASX: NXT), Pro Medicus Limited (ASX: PME), and Xero Ltd (ASX: XRO) have all smashed the market with strong gains.

But one ASX tech stock has outperformed them all. So much so, you would have more than tripled your money if you bought its shares a year ago.

Which ASX tech stock?

The ASX tech stock in question is Nuix Ltd (ASX: NXL).

Since this time last year, its shares have rallied an incredible 260%. To put that into context, a $10,000 investment 12 months ago would be worth $36,000 today.

Nuix is a leading provider of investigative analytics and intelligence software. It notes that this software empowers customers to be a force for good by finding truth in the digital world.

It can help users collect, process, and review massive amounts of structured and unstructured data, making it searchable and actionable at scale and speed, with forensic accuracy.

Earlier this month, it updated its guidance for FY 2024. It revealed that based on the receipt of funds relating to an insurance claim made for non-operational legal costs associated with litigation, it now expects its statutory EBITDA to be in the range of $55 million to $60 million in FY 2024. This compares to its previous guidance of $47 million to $52 million for the year.

Is it too late to invest?

The ECP Growth Companies Fund remains positive on the ASX tech stock. It is a high conviction Australian equities portfolio designed to deliver alpha above benchmark.

And it has done this over the last five years, outperforming the S&P/ASX 300 Accumulation Index by 1.6% over the period.

Commenting on Nuix, the fund manager said:

Nuix outperformed in May following a positive trading update to the market, in which the company guided higher on statutory revenue and provided EBITDA guidance. There remains a significant growth opportunity ahead of Nuix, driven by continued growth in unstructured data and the shift to consumption based contracts

This could make it well worth keeping a close eye on this soaring tech stock.

Shaw and Partners is positive on the company. However, its analysts believe that Nuix shares are about fair value now. They currently have a buy rating and $3.00 price target on them.

Motley Fool contributor James Mickleboro has positions in Life360, Nextdc, Pro Medicus, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Pro Medicus, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pro Medicus. 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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