The Catapult Group International Ltd (ASX: CAT) share price has been amongst the best performers on the All Ordinaries on Wednesday.
In morning trade the sports analytics and wearables company's shares raced 9% higher to a 52-week high of $1.87.
Today's gain means the Catapult share price has extended its year to date gain to 150%.
Why is the Catapult share price racing higher today?
Investors have been scrambling to buy Catapult's shares following a broker upgrade this morning. That upgrade came out of Morgans and was in response to an announcement yesterday.
On Tuesday Catapult's announced that Rugby Australia has renewed its union-wide performance partnership and expanded it to include Catapult's new Vector technology.
Its new Vector platform focuses on optimising athlete performance, mitigating injury risk, and supporting return to play processes.
Rugby Australia will be deploying it across all Australian representative teams, Super Rugby franchises, academies, and match officials.
Morgans was very pleased with this deal. So much so, it upgraded its shares from hold to an add rating and lifted the price target on them by a massive 40% to $2.19.
This price target implies potential upside of over 17% from the 52-week high its shares made this morning.
According to the note, the broker believes that technology rather than price was the driver of Rugby Australia's renewal. It feels this proves that the company's investment in research and development is paying off.
It also notes that there are no further material renewals on the horizon. This appears to suggest that the risk of a major contract loss in the short term is very low.
Overall, Morgans believes the company is well-placed to deliver on its sales and earnings targets in FY 2020.
Also on the rise on Wednesday are the shares of Bingo Industries Ltd (ASX: BIN) and EML Payments Ltd (ASX: EML). Bingo's shares surged higher following its AGM update and EML Payments' shares are up following a major acquisition.
