Shares of AvePoint (AVPT 1.27%) skyrocketed today after an analyst at Goldman Sachs started coverage of the company and put a buy rating on its stock.
The tech stock jumped by as much as 13.2% today and had gained 11.6% as of 12:50 p.m. EDT.
Goldman Sachs analyst Brian Essex initiated coverage of AvePoint, the largest data management solutions provider for Microsoft 365, today and set a $17 price target for the company's stock. That price target implies a 67% upside from the company's current share price.
Essex said the stock was "relatively undiscovered" and said AvePoint should benefit as more companies adopt Microsoft 365.
AvePoint announced back in November of last year that it would go public through a $2 billion merger with the special purpose acquisition company (SPAC) Apex Technology Acquisition Corporation. The company began trading under the AvePoint name on July 2.
Essex's bullish opinion on AvePoint comes less than a week after Evercore ISI analyst Kirk Materne initiated coverage of AvePoint with a buy rating as well, and a $15 price target. Materne said the company is riding a "Microsoft cloud tsunami" and expects compound annual revenue growth of at least 25% between now and 2025.
With AvePoint going public through a SPAC recently, it's likely that the company's stock will experience some volatility. Investors should always be cautious about investing in newly public companies. It may be wise to wait for the company to report several quarters of financial results before investors decide to purchase AvePoint's shares.