If you’re wanting to invest in the tech sector, then the two ASX shares listed below could be worth considering.
Both have recently been tipped as buys with significant upside potential in 2022. Here’s what you need to know about them:
NEXTDC Ltd (ASX: NXT)
Analysts at Citi are very positive on this data centre operator’s shares. The broker was pleased with NEXTDC’s performance in FY 2021 and expects more of the same in the current financial year thanks to accelerating cloud adoption and digitisation.
Citi commented: “With FY22e earnings largely contracted and customer expansion options underpinning our medium-term forecasts, we maintain our Buy call with a $15.40 target price. With bookings going forward skewing towards wholesale/hyper-scale, we expect revenue per MW to decline, however expect strong earnings growth underpinned by accelerating cloud adoption and digitisation.”
The broker has a buy rating and $15.40 price target on the company’s shares. Based on the current NEXTDC share price, this implies potential upside of 20%.
Nitro Software Ltd (ASX: NTO)
Bell Potter is very bullish on this document productivity company.
It is the company behind the Nitro Productivity Suite, which provides integrated PDF productivity and eSignature tools to businesses globally. At the last count, a total of 68% of the Fortune 500 were customers of Nitro, which appears to be a testament to the quality of its offering.
Bell Potter notes that the company has also just strengthened its offering further with a game-changing acquisition of Connective NV for US$81 million.
The broker commented: “The rationale for the acquisition is it will accelerate and enhance Nitro’s eSign, eID (electronic identity) and document workflow capabilities. It will also position Nitro to become the third global player in the enterprise eSign market along with DocuSign and Adobe.”
Bell Potter has a buy rating and $4.50 price target on the company’s shares. This implies upside of approximately 90% for the Nitro share price.
The post 2 buy-rated ASX tech shares with huge upside potential appeared first on The Motley Fool Australia.
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*Returns as of August 16th 2021
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Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. 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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