Why the Nuix (ASX:NXL) share price is racing 7% higher today

A leading broker believes the Nuix share price is a bargain…

| More on:
person using a pen on a laptop with a rising share price graph

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Nuix Ltd (ASX: NXL) share price has been a strong performer on Thursday.

In afternoon trade, the investigative analytics and intelligence software provider's shares are up 7% to $2.80.

Despite this strong gain, the Nuix share price is still down a disappointing 67% since the start of the year.

Why is the Nuix share price charging higher today?

Investors have been buying the company's shares after a leading broker responded positively to news that its Chief Executive Officer (CEO) and Chief Financial Officer (CFO) are leaving.

On Tuesday Nuix advised that CEO Rod Vawdrey intends to retire but will remain in the role while an international search is conducted for a replacement to lead the company on the next phase of its journey. It also advised that the company's CFO, Stephen Doyle, has had his employment terminated by mutual agreement with effect from 30 June.

This follows a series of guidance downgrades by Nuix since its IPO late last year, which has led to its shares crashing notably lower than their listing price.

What did the broker say?

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $6.40 price target on the company's shares.

Based on the latest Nuix share price, this price target implies potential upside of almost 130% over the next 12 months.

While Morgan Stanley acknowledges that such an overhaul in the C-suite is unusual so soon after an IPO and carries risks, it believes it is a necessary and constructive step towards rebuilding investor confidence in the company.

Outside this, the broker is fan of Nuix due to its long term growth potential. It believes that the global forensic and investigative software market is a structural growth story and Nuix has a strong position within it.

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Man in an office celebrates at he crosses a finish line before his colleagues.
Share Gainers

4 ASX 200 shares racing ahead of the benchmark this week

ASX investors sent these four stocks soaring 12% to 18% this week. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why BHP, Coronado Global, EBR Systems, and Whitehaven Coal shares are pushing higher today

These shares are ending the week on a positive note. Let's find out why.

Read more »

a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.
BNPL shares

Up 87% since April, why the Zip share price can keep flying higher into 2026

A leading fund manager expects more outsized gains from Zip shares ahead.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserly session for investors today.

Read more »

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a bountiful session for investors this hump day.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Coronado, DroneShield, Lovisa, and Mayne Pharma shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »