Analysts say these ASX tech shares have over 40% upside

Rocket going up above mountains, symbolising a record high.

Rocket going up above mountains, symbolising a record high.

If you’re a fan of tech shares, then you may want to look closely at the two listed below.

Here’s why these could be tech shares to buy:

Altium Limited (ASX: ALU)

The first tech share for investors to look at is Altium. It is the electronic design software provider behind the Altium 365 and Altium Designer platforms. In addition, the company owns the Nexus collaboration platform and the Octopart search engine for electronic parts.

Importantly, all of Altium’s platforms have exposure to the printed circuit board (PCB) market, which is growing strongly thanks to industry trends such as Internet of Things (IoT) and artificial intelligence.

Analysts at Bell Potter are bullish on Altium and are forecasting strong growth in the coming years. In light of this, the broker has a buy rating and $41.25 price target on the company’s shares. Based on the latest Altium share price of $28.76, this implies potential upside of 43% over the next 12 months.

Megaport Ltd (ASX: MP1)

Another ASX tech share that could be a buy in June is Megaport. It is a leading cloud connectivity and networking solutions provider with operations across a large number of data centres globally.

Megaport has been tipped to grow rapidly in the coming years by Goldman Sachs thanks to the long-term structural tailwinds of public cloud adoption (and multi-cloud usage).

In addition, the transition towards Networking as a Service (NaaS) is expected to be a key driver of its growth. All in all, Goldman estimates that these tailwinds currently provide it with a $129 billion per annum opportunity across its current geographies.

The broker has a buy rating and $13.10 price target on its shares. Based on the current Megaport share price of $7.31, this suggests potential upside of 79% over the next 12 months.

The post Analysts say these ASX tech shares have over 40% upside appeared first on The Motley Fool Australia.

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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. has positions in 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 Scott Phillips.

from The Motley Fool Australia

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