The tech sector has fallen out of favour with investors in 2022. This has led to many tech shares falling heavily.
While this is disappointing, it may have created a buying opportunity for investors. For example, the three tech shares listed below have been tipped as buys with major upside potential. Here’s what you need to know about them:
Life360 Inc (ASX: 360)
The first ASX tech share to look at is San Francisco-based app maker Life360. Its eponymous app offers families a wide range of safety solutions for the modern world. This includes real-time location sharing and notifications, driving safety features like Crash Detection and Roadside Assistance, and messaging. At the last count, the company had over 3313 million monthly active users.
Bell Potter is very positive on the company. It currently has a buy rating and $13.51 price target on its shares. This is almost double the current Life360 share price of $7.00.
Nitro Software Ltd (ASX: NTO)
Another ASX tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools to customers. Demand has been growing strongly in recent years and has continued in FY 2022, underpinning further stellar recurring revenue growth.
Goldman Sachs is very positive on the company and notes that it has a total addressable market (TAM) of US$34 billion. The broker recently initiated coverage on its shares with a buy rating and $2.95 price target. This is 66% higher than the current Nitro share price of $1.78.
PointsBet Holdings Ltd (ASX: PBH)
A final ASX tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports betting products and services to punters in the ANZ and North American markets via its scalable cloud-based platform. Its shares have fallen materially in recent months despite it continuing to grow its revenues at a rapid rate.
Goldman Sachs appears to see this as a buying opportunity. It recently retained its buy rating and $9.97 price target. This is more than double the current PointsBet share price of $4.50.
The post 3 buy-rated ASX tech shares with at least 60% upside potential appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited and Pointsbet Holdings Ltd. 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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