2 fantastic ASX tech shares tipped for big things in 2022

Next year, 2022, could be a big year for some of the ASX tech shares according to some leading experts.

The last couple of years have been incredible times of transformation for some businesses, and the economy as a whole.

These two ASX tech shares could have a lot more for investors over the next 12 months:

Temple & Webster Group Ltd (ASX: TPW)

The online furniture and homewares business is rated as a buy by Credit Suisse with a price target of $15.89.

It was also very recently rated as a buy by UBS, with a price target of $12.20.

UBS thinks that the company will keep benefiting from the shift of consumers to buying things online. More customers are returning and buying more from the e-commerce retailer, and the business can keep adding new product lines to expand its addressable market.

Analysts and management alike believe that the business can grow revenue quickly and also increase its profit margins as it benefits from operating leverage.

The business is expecting its fixed costs to become smaller in percentage terms compared to revenue as the business gets bigger. Greater scale will also help with things like improved supplier terms, greater ranges of (private label) products, increasing marketing and even further improvements with its technology (like augmented reality).

This ASX tech share is continuing to see strong year on year growth. In FY22, from 1 July 2021 to 15 October 2021, revenue had increased 56% compared to the prior corresponding period.

It continues to invest into areas of the business to grow its online market share with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in its ‘home’ market.

Airtasker Ltd (ASX: ART)

Online services marketplace business Airtasker is rated as a buy by the broker Morgans. It has a price target of $1.27 – that’s more than 40% higher than where it is today.

Morgans thinks that Airtasker has good long-term growth potential.

Not only is the business growing in Australia, but it’s experiencing rapid growth internationally as well.

The FY22 first quarter saw gross marketplace volume (GMV) growth of 6.2% year on year to $35 million despite key markets (like Sydney and Melbourne) in lockdown for the quarter.

Airtasker has seen a “strong post-lockdown bounce back” with the last weekly update revealing GMV of $3.6 million, which equates to an annualised run rate of $185 million.

In the first quarter of FY22 it saw international GMV growth of more than 100%, driven by “strong growth” in the UK.

The ASX tech share is expanding in the US with its Zaarly acquisition and it’s expanding in some city markets including Dallas, Kansas City, Miami and Atlanta. Airtasker said the USA expansion was just in its early days.

It’s planning to expand its marketing expenditure significantly to grow geographically and increase its brand recognition.

The post 2 fantastic ASX tech shares tipped for big things in 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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