S&P/ASX 300 Index (ASX: XKO) tech stock Nuix Ltd (ASX: NXL) looks to be putting a year to forget behind it.
Shares in the investigative analytics and intelligence software provider are down 1.3% today, changing hands for $2.99 apiece. That sees the Nuix share price down 55.0% since this time last year.
Among the headwinds, the ASX 300 tech stock is priced for strong growth, and the company's half-year results (H1 FY 2025) underwhelmed expectations.
Annualised contract value (ACV) growth over the first half slowed markedly. For the six-month period, Nuix reported that ACV increased by 2.2%.
But things took a turn for the better for Nuix stockholders following the release of the company's full-year FY 2025 results on 26 August.
Among the highlights, Nuix reported ACV of $228.4 million as at 30 June, an increase of 8% from the prior corresponding period.
Despite today's dip, the Nuix share price is now up 45.2% since market close on 25 August, the day before the company reported.
And according to the team at Moelis Australia, the ASX 300 tech stock is well placed to keep charging higher.
Moelis Australia analyst Sinclair Currie noted:
Nuix demonstrated improved momentum in 2H25, supported by the award of a new customer contract late in the year. Sustaining this momentum into FY26 will depend on keeping churn under control.
We believe management's roadmap to a SaaS release of Nuix Neo in 2H FY26 could help mitigate churn by providing greater flexibility and a clear cloud migration pathway.
Image source: Getty Images
Should you buy the ASX 300 tech stock today?
In late September, Nuix's investor day featured demonstrations, panel discussions, real-world case studies, along with a product roadmap and strategic update.
"The event focused on artificial intelligence and how organisations are leveraging AI to innovate. Management highlighted Nuix's strong alignment with AI growth," Currie said.
The first reason Moelis Australia is bullish on the ASX 300 tech stock is the speed and accuracy of the company's platform.
Currie said:
Management reiterated Nuix's leading ability to process large volumes of data from diverse sources both quickly and accurately. The Nuix engine can now process 1.5TB per hour, up from 1TB per hour in 2023.
The second reason Nuix is well-positioned to outperform is the growing AI opportunity.
According to Currie:
Generative AI requires high-quality data to deliver reliable results. Nuix proposes that organisations can utilise its processing capability to refine data inputs, improving the accuracy of AI outputs.
And the third reason you may want buy shares today is the SaaS solution the company is developing.
Currie noted:
Nuix Neo is currently deployed primarily on-premise. Management plans to introduce a Software-as-a-Service (SaaS) version of Neo towards the end of FY26. We estimate customers will value this option, particularly for the flexibility it offers to migrate to the cloud in future.
Connecting the dots, Moelis Australia has a buy rating on the ASX 300 tech stock with a 12-month price target of $3.35 a share.
That represents potential upside of 12% from current levels.
