Here are two buy-rated tech shares…
The post 2 ASX 200 tech shares Citi rates as buys appeared first on The Motley Fool Australia. –
If you’re not sure which ASX shares to buy, then the two listed below could be worth considering.
These ASX 200 tech shares have been tipped as buys by the analysts at Citi. Here’s what they are saying about them:
Appen Ltd (ASX: APX)
The first ASX 200 tech share that Citi rates highly is Appen. It is an artificial intelligence data services company preparing the data that goes into the artificial intelligence and machine learning models of some of the biggest tech companies in the world such as Google and Facebook. While a reduction in investment from tech giants in these activities at the height of the pandemic weighed on demand for Appen’s services, the tide does now appear to be turning. Particularly given a recent update from rival Telus, which Citi highlights as pointing to improving trends for artificial intelligence data projects.
Citi currently has a buy rating and $17.10 price target on Appen’s shares. This compares to the latest Appen share price of $11.80.
NEXTDC Ltd (ASX: NXT)
Another ASX 200 tech share that Citi is a fan of is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. NEXTDC has been growing at a consistently strong rate for years thanks to the structural shift to the cloud. This has led to increasing demand for capacity in its growing network of world class data centres across Australia. More of the same is expected in FY 2022, with the company guiding to operating earnings growth of 19% to 22% year on year. Citi appears confident this solid form with continue beyond FY 2022 thanks to accelerating cloud adoption and digitisation.
The broker currently has a buy rating and $15.40 price target on the company’s shares. This compares to the latest NEXTDC share price of $12.47.
Should you invest $1,000 in Appen right now?
Before you consider Appen, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Appen wasn’t one of them.
The online investing service he’s run for nearly 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 are better buys.
*Returns as of August 16th 2021
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.