PEXA Group Ltd (ASX: PXA) shares are having a tough time on Tuesday.
In afternoon trade, the ASX 200 tech share is down 6% to $10.76.
While this is disappointing for shareholders, it could have created a buying opportunity for the rest of us.
That's the view of analysts at Ord Minnett, which see significant value in the property settlement technology company's shares.
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What is the broker saying about this ASX 200 tech share?
Ord Minnett has been pleased with the company's performance in FY 2026, highlighting that a recent trading update revealed ongoing momentum in Australian property transaction volumes. It said:
Pexa Group reiterated its FY26 guidance in a strong March-quarter trading update that highlighted ongoing momentum in Australian property transaction volumes. Domestic volumes are tracking well ahead of internal expectations, with total transactions up 7.3% year on year (YoY). This compares with prior assumptions for a modest decline in second-half volumes, and marks a robust start to the second half of FY26.
The strength was evident across key transaction categories, including transfers, refinances and other transactions, all recording solid year-on-year growth. National market penetration remained stable at around 90%, consistent with recent periods. Operationally, the Australian business continues to perform well, supporting confidence around earnings delivery in the near term.
However, the broker does concede that there are emerging risks that investors need to be aware of. It adds:
That said, there are emerging risks to fourth-quarter activity, including consecutive interest rate increases, softer auction clearance rates and the potential for tax reform affecting investment properties.
Big potential returns
According to the note, the broker has a buy rating and $20.00 price target on its shares.
Based on its current share price, this implies potential upside of approximately 85% for investors over the next 12 months.
Commenting on its buy recommendation, Ord Minnett said:
The UK business showed mixed trends, although currency movements provided a short-term tailwind by reducing losses in the segment. Remortgage instruction volumes were strong as borrowers moved to lock in fixed rates ahead of anticipated interest rate rises, although some market share softness was evident. Importantly, many of these instructions are expected to convert to completions in the first quarter of FY27, providing some forward earnings support.
Despite these positives, the review of integrated property accounting service prices by the NSW Independent Pricing and Regulatory Tribunal (IPART) remains a key near-term overhang for investors, with a final report not due until September. Resolution of the pricing review is likely to be the catalyst required to unlock investor confidence in Pexa's prospects and valuation upside. We maintain our Buy recommendation and target price of $20.00.
