Shares of Triterras (NASDAQ:TRIT) skyrocketed today after an analyst initiated coverage of the company's stock with an outperform rating.
The tech stock was up by as much as 20.8% today, but it lost much of those gains and ended the day up 4.9%.
Oppenheimer analyst Owen Lau initiated coverage of Triterras with an outperform rating and a price target of $23 per share late yesterday. Investors jumped on that news today and pushed the fintech company's stock up early in the day.
Triterras's main product is the company's commodity-trading and trade-finance platform, Kratos. The company says Kratos "connects and enables commodity traders to trade and source capital from lenders directly online."
Lau thinks Triterras has an "intriguing paper-to-electronic opportunity" by using blockchain technology to change how trades are conducted. The company says using blockchain technology makes its trade documents more secure, and allows faster and more efficient trading.
Investors appeared to agree with Lau's assessment of the company today and pushed shares higher.
Triterras is new to the market and only began trading publicly on Nov. 11. Despite today's share-price pop, the stock is up just 7.4% since the company went public. Considering the company's shares jumped so quickly on an analyst's note today and that Triterras's shares haven't been publicly traded for very long, investors may want to proceed cautiously with this stock.