Buy this ASX tech stock before it’s too late: Bell Potter

If you are wanting exposure to the beaten down tech sector, then it could be worth looking at the ASX tech stock in this article.

That’s because analysts at Bell Potter see potential for its shares to rise strongly from current levels.

Which ASX tech stock?

The stock in question is airports and utilities software provider Gentrack Group Ltd (ASX: GTK).

Bell Potter was pleased with the company’s FY 2025 results, noting that they were largely in line with expectations. It said:

GTK’s FY25 was largely in-line with consensus revenue/EBITDA at $230.2m/$27.8m respectively (-4% vs. BPe EBITDA). Positive pipeline commentary drove a strong share price reaction, which provided improved visibility on near-term project win/growth outlook.

Group revenue grew 8% to $230.2m, in-line with guidance/consensus (- 1% vs. BPe); Utility revenue increased 7% to $193.4m, which was underpinned by 12% recurring revenue growth somewhat offset by a -5% decline in project revenues (reflecting strong pcp); 2H25 was a record half for Utility project revs. Veovo revenue increased +15% to $36.8m on both ARR/NRR growth (+27% ex. Hardware sales)

Another positive for the broker was its outlook commentary. It highlights that the ASX tech stock’s sales pipeline has improved significantly in recent months. Bell Potter adds:

GTK’s pipeline has developed considerably since it’s last update; it is currently a “preferred” vendor at 3 prospects, shortlisted at 3 others, and well placed at 4 others for 2026 counterparty decisions. These opportunities represent ~30m meter points in total; winning 3-4 would set up strong FY27 growth according to GTK. EPS changes in following the result are -1%/+2%/+8% through FY26e-28e respectively on a broad mix of mix shift across segments and increased amortisation.

Time to buy

According to the note, the broker has responded to the update by reiterating its buy rating with an improved price target of $11.00 (from $9.80).

Based on its current share price of $8.49, this implies potential upside of almost 30% for investors from current levels.

Commenting on its buy recommendation, Bell Potter said:

Our TP rebounds to A$11.00 on roll fwd of DCF and earnings upgrades following pipeline commentary which has provided greater visibility on potential project revenue growth as well as go-live proof-points for GTK to reference in g2.0 discussions. A positive growth outlook for GTK is underpinned by rapidly shifting energy consumption and production trends, driving increased complexity in energy grids which is meeting technical debt within legacy billing platforms.

The post Buy this ASX tech stock before it’s too late: Bell Potter appeared first on The Motley Fool Australia.

More reading

• Why Gentrack, IPD, SRG, and Web Travel shares are racing higher today
• Why Gentrack, Monash IVF, Pro Medicus, and Qube shares are racing higher today
• Why is this ASX 300 tech stock rocketing 21% today?
• Why Gentrack, Kogan, Webjet, and WiseTech shares are pushing higher today
• Guess which ASX tech stock is tipped to rise 50%+

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 Gentrack Group. The Motley Fool Australia has positions in and has recommended Gentrack Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.