If you’re a fan of tech shares, then you may want to look at the two listed below.
Here’s why these tech shares have been rated as buys:
Altium Limited (ASX: ALU)
The first ASX tech share to look at is Altium. It is a printed circuit board (PCB) design software provider behind the Altium 365 and Altium Designer platforms. These platforms are the clear leaders in their field and used by companies such as Amazon, BAE Systems, Facebook, and Tesla.
Last month Altium released its half year results and revealed a 28% increase in revenue to US$102 million and a 38% jump in net profit to US$23 million. This stellar growth is being underpinned by strong demand for its software thanks to favourable tailwinds such as the Internet of Things (IoT) and artificial intelligence. These are supporting an explosion of electronic devices globally.
Pleasingly, Altium’s CEO, Aram Mirkazemi, is positive on the future. He said: “We are picking up pace toward market dominance and accelerating our transformative vision to digitally connect electronic design and manufacturing to the broader engineering ecosystem.”
Bell Potter remains positive on Altium following its half year results. In response to the release, the broker retained its buy rating but trimmed its price target to $38.75.
Megaport Ltd (ASX: MP1)
This leading cloud connectivity and networking solutions provider could be a tech share to buy. This is due to its first mover advantage in a massive market.
Goldman Sachs estimates that Megaport has exposure to $129 billion per annum spent on fixed enterprise networking across its current geographies. This market is being underpinned by structural tailwinds such as the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).
All in all, the broker believes this leaves Megaport well-placed for growth over the next decade. As a result, it has put a buy rating and $19.50 price target on the company’s shares.
The post Analysts name 2 excellent ASX tech shares to buy appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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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