If you’re looking for growth shares to buy, then the tech sector could be a great place to start.
At this side of the market, there are a number of companies with the potential to grow materially over the next decade.
With that in mind, I have picked out two top tech shares which have been rated as buys. Here’s what you need to know about them:
Afterpay Ltd (ASX: APT)
It wasn’t that long ago that Afterpay was a small cap share flying under the radar of the majority of investors. Today, the payments company has become a dominant force in the buy now pay later (BNPL) market and its name is a verb for consumers around the world.
While Afterpay’s growth has been meteoric over the last few years, it is far from over. Thanks to its international expansion, its massive US opportunity, and new product launches, Afterpay still has a very long runway for growth. This could make it a great long term option for investors.
One broker that is very positive on its outlook is Wilsons. The broker has a buy rating and $160.20 price target on its shares. Its analysts see significant opportunities for Afterpay in mainland Europe and the Asia-Pacific region.
Kogan.com Ltd (ASX: KGN)
Another ASX tech share to consider is Kogan. Like Afterpay, it has been a very strong performer so far in FY 2021.
For example, during the first half the ecommerce company reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million. This strong result was driven by a 76.8% increase in Kogan active customers to 3 million, its acquisition of Mighty Ape, and growth in the Kogan Marketplace and Exclusive Brands segments.
And while the surge in demand that it received at the height of the pandemic may not be repeated this year, its long term growth outlook remains extremely bright. This could make it a good long term investment option, especially after a sharp pullback in its share price recently.
Credit Suisse is positive on the company. It has an outperform rating and $20.85 price target on its shares.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- What’s lifting the Afterpay (ASX:APT) share price today?
- Afterpay and Zip were among the most traded ASX shares last week
- Zip (ASX:Z1P) share price races 11% higher on record Q3 performance
- Got money to invest for income? Here are 2 ASX dividend shares
- Are you buying the companies of the past, or the future?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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