These growing tech shares have been named as buys
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If you’re interested in adding a tech share or two to your portfolio, then you may want to look at the two listed below.
These two ASX tech shares have been rated as buys and tipped to grow strongly over the long term. Here’s why they could be excellent options:
Nitro Software Ltd (ASX: NTO)
The first 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 via its Nitro Productivity Suite. This product provides integrated PDF productivity and electronic signature tools to customers.
Demand for its offering continues to grow thanks to its quality and a number of positive industry tailwinds. This includes the global shift to remote and digital work, which is being accelerated by the COVID-19 pandemic.
This week Nitro released its second quarter update and revealed a 56% increase in its annualised recurring revenue (ARR) to US$33.8 million. This puts it on track to achieve its FY 2021 guidance for ARR of between US$39 million and US$42 million.
Bell Potter is very positive on the company. In response to its update, this morning the broker retained its buy rating and lifted its price target to $4.00.
WiseTech Global Ltd (ASX: WTC)
Another ASX tech share to consider is WiseTech Global. It is a leading developer and provider of software solutions to the logistics execution industry globally. At the last count, the company had over 17,000 customers, including 41 of the top 50 global third-party logistics providers and all of the 25 largest global freight forwarders worldwide. Its flagship platform, CargoWise, forms an integral link in the global supply chain and executes over 60 billion data transactions annually.
WiseTech Global appears well-placed to continue its growth long into the future. This is thanks to its high quality platform, strong market position, and growing freight volumes globally. It also looks set to benefit from its customers making acquisitions, which is expected to lead to increased usage from existing customers.
Earlier this week analysts at Credit Suisse upgraded the company’s shares to an outperform rating with a $34.00 price target. The broker believes COVID-19 has structurally benefitted its CargoWise proposition. In addition, Credit Suisse is confident its FY 2021 result will be strong and expects positive guidance for FY 2022.
Should you invest $1,000 in WiseTech right now?
Before you consider WiseTech, 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 WiseTech 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 May 24th 2021
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Motley Fool contributor 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 and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.