The tech sector was a sea of red on Thursday when panic selling drove the S&P ASX All Technology index a sizeable 5.7% lower.
While this decline is very disappointing, every cloud has a silver lining. On this occasion, the silver lining is that it has dragged some quality ASX shares down to attractive levels.
Two ASX tech shares that could be buys after the selloff are listed below:
Altium Limited (ASX: ALU)
The first ASX tech share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the popular Altium Designer and cloud-based Altium 365 platforms.
As PCBs are found inside almost all electronic devices, demand for Altium’s best in class platform is expected to increase strongly in the future as the Internet of Things and artificial intelligence markets continue their explosive growth. This bodes well for its sales and earnings growth over the next decade.
The team at Jefferies is positive on Altium. It believes the quality and price of Altium’s platform has positioned it well to win a significant share of the enterprise market. Jefferies has a buy rating and $48.83 price target on its shares, which compares to the latest Altium share price of $41.17.
Life360 Inc (ASX: 360)
Another ASX tech share to look at is Life360. It operates in the digital consumer subscription services market with a focus on products and services for digitally native families. Bell Potter is very positive on the company due to its Life360’s freemium model and ability to convert its huge user base (30m+) into paying subscribers. The latter is expected to be boosted by its acquisitions of Jiobit and Tile.
Overall, the broker believes the company is well placed to disrupt the safety and security market and achieve strong top line growth for many years.
Bell Potter has a buy rating and $16.25 price target. This compares very favourably to the latest Life360 share price of $8.39.
The post 2 excellent ASX tech shares to buy after the market meltdown appeared first on The Motley Fool Australia.
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More reading
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- ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
- ASX 200 tech shares on watch after Nasdaq selloff
- Is the Altium (ASX:ALU) share price in the buy zone?
- 5 best ASX 200 tech shares of 2021
Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. 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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