Freelancer shares jump on the open, after a $10 million raise

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Freelancer shares have cracked the $1.50 mark and are up 1.69%, after announcing a $10 million raise at $1.40 and increasing the share free float by 23%.

Coming out of a trading halt this morning, the company continued its rally.

Here’s the chart.

In a recent note to clients, Canadian investment bank Canaccord upgraded Freelancer to a buy and put a $1.75 price target on it. The bank said Freelancer’s 41% gross profit increase was “impressive” and has upgraded its FY15 Freelancer estimates three times in six months.

“A sleek and incrementally improving platform has enabled FLN to emerge as one of the fastest growing technology companies listed on the ASX. Unlike its early stage peers, FLN continues to experience consistent upgrades to both revenue and gross profit forecasts (+11% since Jul-14). Further investments in marketing and product initiatives and expanding into new regions/territories should see its “exceptional growth” rate continue in the medium term,” the investment bank said in a recent note to clients.

For FY16 Canaccord forecasts Freelancer’s revenue and gross profit will grow by 5% and 6% respectively. It also expects Freelancer will invest in excess of $100 million into product developments, marketing and acquisitions over the next three years.

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