Is the EML (ASX:EML) share price on the comeback trail?

It seems tech shares could be back in focus.

| More on:

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

Key points
  • EML shares have rallied 17% in the past month of trade
  • Investors are regaining confidence in both tech and growth shares, sending indices back towards previous highs
  • In the last 12 months, the EML share price has collapsed more than 42%

The EML Payments Ltd (ASX: EML) share price is heading north today and is now trading 2.34% higher at $2.84.

It's been a difficult year to date for the payments solutions company, having erased 12% since trading resumed in January.

However, as ASX tech shares stage a comeback rally in March, EML has jumped on for the ride and is now 17% higher in that time.

a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

Image source: Getty Images

What's up with the EML share price lately?

As sentiment improves on the tech sector, EML has surged to be one of the top performers in the last two weeks.

Market pundits were also quick to back the company again after its expansion into the employee benefits market (EBM) in Europe.

The EBM is worth more than $88 billion globally and is expected to grow by $20 billion between 2021 and 2025, EML says. Europe represents around 35% of this market.

In a recent note, analysts at UBS reckon the deal is a positive one for the payments company, valuing EML at $4.55 per share in the process.

The move also hammered in Ord Minnett's investment thesis on the company. The broker is also valuing EML at a shade over $4 per share.

Ron Shamgar of TAMIM Asset Management — an owner of EML shares — also said the play was "a big win" for the payments solutions specialist.

Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has rallied hard in March and is now up 6% in the past month. However, zooming out, it is still down more than 16% this year to date.

EML has tracked the tech index closely and appears to be following suit with strengths in the wider sector.

As a result of this and the recent update, it appears investors are throwing their support behind EML once again.

TradingView Chart

EML share price snapshot

In the last 12 months, the EML share price has collapsed 42% and is down around 12% year to date.

However, as investors pile into growth and tech again, shares have rallied 17% in the previous month of trade.

The company has a market capitalisation of around $1 billion.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Smiling young parents with their daughter dream of success.
Technology Shares

Here's why Life360 shares could rise a massive 75%

Big returns could be coming for buyers of this tech stock according to Bell Potter.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Technology Shares

3 reasons to buy Xero shares now

This beaten down tech stock could be worth considering. Let's see why.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
52-Week Lows

Down 43% this year, this ASX tech stock is now back at January 2025 levels

Megaport shares are down 43% this year as weak momentum continues.

Read more »

A judge bangs down the gavel.
Technology Shares

Why are shares in this ASX defence company tanking today?

They've received more than just a slap on the wrist.

Read more »

A boy holds on tight as his gaming console nearly blows him away.
Technology Shares

This ASX tech firm presents a "unique" opportunity, Shaw and Partners says

A major game launch is just days away.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Technology Shares

DroneShield shares rebound on investor update

The counter-drone technology company has released an update.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Should you buy the 20% dip in the DroneShield share price?

This high-flying stock is having its wings clipped on Wednesday.

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
Technology Shares

DroneShield posts record revenue and unveils leadership changes

DroneShield posts record revenue and announces CEO and Chairman changes in its latest update.

Read more »