Xero Ltd (ASX: XRO) and two other ASX tech shares hit new record highs today.
The Xero share price rose by 0.72% to reach a new all-time high of $154.78 on Thursday. The accounting software-as-a-service (SAAS) company did not report any news today.
Fellow ASX tech share Nuix Limited (ASX: NXL) also reached a new all-time high of $7.78 today. This represented a 2.23% gain on yesterday's closing price. Nuix also had no news for us today.
The third tech stock hitting a new record today is Adveritas Ltd (ASX: AV1). Shares in the advertising technology company reached 8.5 cents on Thursday, up 2.4%.
Adveritas did not release any announcements today.
The price peaks come as ASX tech shares outperform most other market sectors on Thursday.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently up 0.41%. The benchmark S&P/ASX 200 Index (ASX: XJO) is up 0.065%.
ASX tech shares are following the lead of the Nasdaq Composite Index (NASDAQ: .IXIC).
The NASDAQ rose by 2.93% overnight following Republican Donald Trump's win in the US Presidential election.
Tesla Inc (NASDAQ: TSLA) shares ripped 14.75% higher, with investors no doubt excited about CEO Elon Musk's close relationship with the new President.
Musk has campaigned with Trump and there is talk he may be appointed as an advisor to the new President.
Is it too late to buy Xero shares?
Hell no, according to top broker Goldman Sachs.
The broker currently has a conviction buy rating on Xero shares with a 12-month target price of $201.
That's a potential 30% upside on today's new record share price!
Goldman says Xero has a huge total addressable market (TAM) and plenty of scope for growth.
In a recent note, the broker said:
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$100bn TAM.
Given the company's pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ – the stock is Buy rated.
Key catalysts include: High frequency data (downloads/visitation/pricing); CEO North America strategy update and results, and potential M&A.
Xero share price rise
Xero shares have risen by 36.7% over the past 12 months compared to a 17.5% bump for the ASX 200.
Over the past five years, the ASX tech share has ascended 104% compared to 22% for the ASX 200.
