Insights

2 excellent ASX tech shares tipped for big things

These tech shares could be in the buy zone…
The post 2 excellent ASX tech shares tipped for big things appeared first on The Motley Fool Australia. –

The tech sector is home to a number of companies with strong growth potential.

Two that are highly rated are listed below. Here’s what you need to know about these tech shares:

Adore Beauty Group Limited (ASX: ABY)

The first tech share to consider is Australia’s leading online beauty retailer, Adore Beauty.

Though, calling it just an online beauty retailer is a bit of a disservice as it is so much more. Since launching in 2000, Adore Beauty has evolved into an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.

It has been growing strongly over the last few years and this has continued in FY 2022. Adore Beauty released its first quarter update last week and reported a 25% increase in revenue to $63.8 million. This was underpinned by a 24% jump in active customers to 874,000 and returning customer growth of 63%.

Positively, even when annualised, this is just a fraction of the beauty and personal care (BPC) market in Australia which is estimated to be worth $11.2 billion. Furthermore, it is expected to grow at a 26% CAGR through to 2024.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $6.00 price target on its shares.

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 with its Nitro Productivity Suite. The Nitro Productivity Suite provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

In FY 2021, Nitro is aiming for annualised recurring revenue (ARR) of between US$39 million and US$42 million. This will be up strongly year on year but still well short of its total addressable market which is estimated to be $28 billion.

The team at UBS are very positive on Nitro. Last week they initiated coverage on the company with a buy rating and $4.70 price target. The broker believes Nitro’s ARR could surpass US$100 million by FY 2024.

The post 2 excellent ASX tech shares tipped for big things appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nitro right now?

Before you consider Nitro, 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 Nitro 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

More reading

Top brokers name 3 ASX shares to buy today

Adore Beauty (ASX:ABY) share price up 4% on Q1 update

Brokers name 2 small cap ASX shares to buy

3 ASX shares to buy this week

2 leading ASX e-commerce shares that could be buys in October 2021

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. has recommended Adore Beauty Group Limited. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!