The S&P/ASX 300 Index (ASX: XKO) is extremely unlikely to leap 83% over the next 12-months, but this ASX 300 tech stock has been forecast to do just that.
That's according to the analysts at Moelis Australia, who have a buy rating and bullish outlook on Nuix Ltd (ASX: NXL) shares.
Shares in the investigative analytics and intelligence software provider have come under heavy selling pressure since notching multi-year highs in early November 2024.
As we head into the Tuesday lunch hour, shares are flat today, changing hands for $1.845 each. That sees the Nuix share price down 70% year to date.
Now, here's why the year ahead could be much more profitable for shareholders.
Image source: Getty Images
Nuix announces M&A expansion
Last Thursday, 4 December, Nuix reported that it had inked an agreement to acquire Linkurious, a France-based, graph-powered AI decision platform.
The ASX 300 tech stock said it would pay a maximum of 20 million euros (AU$35.4 million) for the acquisition.
Commenting on the agreement, Nuix interim CEO John Ruthven said:
The acquisition of Linkurious is an exciting accelerator for our strategic vision to enable our customers with insights from complex data at unparallelled speed and scale. This injection of graph-native expertise, proven link analysis technology and quality customers will allow us to bring immediate value to our customers.
The company expects the acquisition to be completed within the next four months.
Should you buy the ASX 300 tech stock today?
The team at Moelis are also optimistic on the potential growth presented by Nuix's acquisition of Linkurious.
"We believe the agreed acquisition of Linkurious provides Nuix with an attractive growth opportunity and is strategically sound," the broker said, citing the first reason you might want to buy the ASX 300 tech stock today.
The second reason is that Nuix has an existing relationship and familiarity with Linkurious.
According to Moelis:
Nuix already integrates with Linkurious, it understands how the technology performs. It has observed how customers value it. We believe this reduces the risks associated with the acquisition and is analogous to the successful acquisition of Rampiva (completed in July 2023).
And the third reason that Nuix shares look appealing today is because of the past year's sharp sell-down.
Moelis noted:
Nuix's share price has retraced significantly as recent operating performance fell below market expectations. On our estimates the current price undervalues the company. The acquisition of Linkurious highlights that Nuix has strategic options to support its Neo-led growth strategy.
Connecting the dots, the broker has a 12-month target price of $3.37 a share for the ASX 300 tech stock.
That represents a potential upside of 82.7% from the current Nuix share price.
