Here are a couple of tech shares that analysts are tipping as buys…
The post 2 exciting ASX tech shares that could be buys appeared first on The Motley Fool Australia. –
If you’re a fan of tech shares, then you may want to look at the ones listed below.
They have been growing strongly and have been tipped to continue doing so long into the future. Here’s what you need to know:
Appen Ltd (ASX: APX)
The first tech share to look at is this artificial intelligence (AI) data services company.
Its shares have come under significant pressure over the last 12 months due to concerns over the softening of demand for its services during the pandemic from some of its biggest customers.
The good news is that management appears to believe that this weakness is only temporary and that the issues it is facing aren’t structural. It is also expecting demand to rebound strongly once trading conditions return to normal.
In addition to this, management recently announced plans to evolve into a provider of a broad range of AI data annotation products and solutions. It believes this will unlock growth in new markets.
Ord Minnett remains positive on the company. It currently has a buy rating and $24.75 price target on its shares. This is almost double where its shares trade today.
Hipages Group Holdings Ltd (ASX: HPG)
Another ASX tech share to consider is this leading online platform and software as a service (SaaS) provider.
Hipages connects tradies with residential and commercial consumers, providing them with job leads. The platform also allows tradies to communicate with customers and run general admin duties.
Goldman Sachs is very positive on the company’s growth prospects. So much so, this morning the broker retained its buy rating and lifted its price target by 20% to $4.10.
The broker said: “We are confident in HPG’s ability to execute on its tradie customer acquisition strategy. Current fundamentals of this business look very strong and should support long-term structural growth in the marketplace. We see c.20% p.a. revenue growth over our forecast period and 48% 3-yr EPS CAGR. On our estimates, HPG is trading at attractive valuation multiples vs peers and is in a strong net cash position.”
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 May 24th 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. owns shares of and has recommended Appen Ltd and Hipages Group Holdings 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.