One area which has been tipped as a place to invest for the long term is the tech sector.
This is because this sector is filled to the brim with companies that have the potential to grow significantly in the future.
But which tech shares should you buy? Three to consider are listed below:
Kogan.com Ltd (ASX: KGN)
Kogan has been an outstanding performer this year thanks to the seismic shift to online shopping because of the pandemic. The ecommerce company has seen its customer numbers and sales grow materially, underpinning exceptional earnings growth. Kogan has also taken advantage of its impressive share price rise by raising funds to provide it with the firepower to make value accretive acquisitions. One of which was announced this month – the $122 million acquisition of New Zealand-based online retailer Mighty Ape. Analysts at Credit Suisse were pleased with the acquisition and put an outperform rating and $20.60 price target on its shares.
Nearmap Ltd (ASX: NEA)
Another tech share that is aiming to grow at a strong rate in the future is Nearmap. This leading aerial imagery technology and location data company is aiming to deliver annualised contract value (ACV) growth of 20% to 40% per annum over the long term. It is also targeting churn levels under 10%. This growth is expected to be underpinned by new growth initiatives and geographic expansion. The launch of new products, such as its highly rated AI product, should also be supportive of growth. Morgan Stanley is positive on the company’s prospects and has an overweight rating and $3.10 price target on its shares.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a fast-growing donor management and engagement platform provider. It has been a very positive performer this year after its strong growth was bolstered by the pandemic. Pleasingly, this impressive form has continued in the first half of FY 2021. Pushpay delivered a 53% increase in operating revenue to US$85.6 million and a 177% jump in EBITDAF to US$26.7 million. This is still only scratching at the surface of management’s long term revenue target of US$1 billion. Goldman Sachs is a fan of the company. It has a conviction buy rating and ~$2.59 price target on its shares.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- ASX 200 falls on Tuesday
- Top ASX shares to buy in 2021
- Why the Pushpay (ASX:PPH) share price is in a trading halt
- 5 things to watch on the ASX 200 on Tuesday
- These are 10 of the best performing ASX tech shares of 2020 so far
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Kogan.com ltd and PUSHPAY FPO NZX. 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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