If you are looking to gain exposure to the beaten down tech sector, then it could be worth considering the two stocks in this article.
That’s because they have been named as buys and are tipped to rise strongly from current levels. Here’s what is being recommended:
Pro Medicus Ltd (ASX: PME)
The first ASX 200 tech stock that could be a buy is Pro Medicus.
It is a healthcare technology company with a specialised focus. Its Visage imaging platform is used by hospitals to process and analyse medical images quickly and efficiently.
The company has built a strong position in the United States, where it continues to win long-term contracts with major healthcare providers. These agreements provide visibility over future revenue and support high margins.
Demand for more efficient medical imaging is growing, particularly as data volumes increase in healthcare systems and radiologist shortages persist.
With a proven product and expanding customer base, Pro Medicus continues to show how specialised software can scale globally.
Morgans recently put a buy rating and $210.00 price target on its shares. Based on its current share price of $134.84, this implies potential upside of more than 55% over the next 12 months.
Putting that in context, a $10,000 investment in Pro Medicus shares would become approximately $15,500 if Morgans’ recommendation proves accurate.
Xero Ltd (ASX: XRO)
Another ASX 200 tech stock that could rise strongly is Xero.
It provides cloud-based accounting software to small and medium-sized businesses. Its platform sits at the centre of financial operations, making it a key tool for managing accounts, payroll, and payments.
The company’s growth opportunity remains significant. There are still many businesses globally that have yet to adopt cloud accounting solutions, and Xero continues to expand its presence in markets such as the United States.
It is also building out additional services, including payments and financial insights, which can increase revenue per user over time.
With a large market opportunity and multiple ways to grow, Xero remains well placed to expand over the long term.
UBS is bullish on this ASX 200 tech stock. The broker recently put a buy rating and $127.00 price target on Xero’s shares. Based on its current share price of $79.30, this implies potential upside of 60% for investors between now and this time next year.
To put that into context, a $10,000 investment would turn into approximately $16,000 if UBS is on the money with its recommendation.
The post These beaten down ASX 200 tech stocks could rise 55% to 60% appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pro Medicus right now?
Before you buy Pro Medicus shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pro Medicus wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
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More reading
- 3 super cheap ASX 200 shares I’d buy right now
- 3 ASX healthcare shares to buy amid sector rout: experts
- 3 reasons to buy Pro Medicus shares today
- Could buying Xero shares at $80 make me rich?
- These ASX 200 shares could rise 25% to 70%
Motley Fool contributor James Mickleboro has positions in Pro Medicus and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.