ASX‑listed software provider Hansen Technologies Ltd (ASX: HSN) gained 10% on Monday on the back of positive news from the company.
And the ASX tech share is continuing to add to the gains, notching up another 5% during morning trade on Tuesday.
What happened?
Hansen's share price surged on Monday following an upbeat update regarding the company's FY25 earnings expectations.
Hansen is now forecasting underlying EBITDA of between $110 million and $112 million for FY25.
That's up around 10% on its previous guidance range of $92 million to $101 million.
Founded in 1971, Hansen provides software solutions for energy and communications companies with customers in 80 countries.
It includes Powercloud among its products, a billing platform used by energy providers.
And Hansen's CIS platform enables utility providers to manage the entire customer service and revenue life cycle.
The company also offers artificial intelligence solutions, such as Hansen's AI Virtual Agent, as part of its product suite.
And a series of new customer wins has helped to push forecasted earnings higher.
New deals
Hansen stated it had signed a four-year contract with Finland's Vattenfall to implement the Hansen CIS system in a deal worth $5.5 million.
The ASX tech company also announced an agreement with a Nordic B2B energy retailer, Å Entelios, to deploy Hansen CIS in support of its expansion into the Danish market.
The recent wins follow a major contract announced by Hansen earlier this year.
Hansen stated in February it had signed a $50 million five-year agreement with VMO2, a JV between Telefónica and Liberty Global.
Additionally, Hansen announced a five-year agreement with one of the largest renewable energy portfolios in the US, estimated at $16 million.
Momentum appears to be building for Hansen, with more new customers and contracts worth millions of dollars announced.
Hansen stated that new customers include Aneo, Modity, World Kinect, Ingrid Capacity, and Å Entelios.
And the company's global footprint continues to expand in Finland and Sweden, while the company marks its first-ever deployments of Hansen Trade into Norway, Denmark, and The Netherlands.
Where to from here?
Things appear to be turning around for the ASX tech share.
Back in 2021, Hansen shares were trading at around $6.32 before sinking to $4.30 in August 2024.
A series of strategic initiatives, such as the acquisition of assets from Germany's CONUTI GmbH, have helped the company accelerate its European expansion plans.
And, despite the recent gains, with Hansen shares changing hands for about $5.60, at least one broker sees more upside in the ASX tech share.
Broker Bell Potter has a price target of $6.28 on Hansen shares.
Based on its current valuation, that implies an upside of about 12% over the next 12 months.
