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2 explosive ASX tech shares to buy in February

Nearmap Ltd (ASX:NEA) and this ASX tech share could be ones to buy in February. Here’s why they are rated highly…
The post 2 explosive ASX tech shares to buy in February appeared first on The Motley Fool Australia. –

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A new month is here, so what better time to look to see if there are any additions you could make to your portfolio to take it to the next level.

If you’re interested in the tech sector, then you might want to take a look at the shares listed below.

Damstra Holdings Ltd (ASX: DTC)

The first ASX tech share to look at is Damstra. It is a $250 million integrated workplace management solutions provider. It provides a cloud-based workplace management platform which is used by businesses globally to track, manage, and protect their workers and assets.

Damstra has been growing strongly over the last couple of years thanks to increasing demand for its solutions. This strong form has continued in FY 2021, with Damstra reporting record quarterly growth last week.

For the three months ending 31 December, Damstra delivered unaudited revenue of $6.9 million, which was up 33% on the previous quarter.

This update appears to have gone down well with analysts at Morgan Stanley. Last week the broker retained its overweight rating and $2.00 price target on Damstra’s shares. 

Nearmap Ltd (ASX: NEA)

Another ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.

Nearmap has been growing at a strong rate over the last few years thanks to increasing demand for its services in the ANZ and North American markets. And although COVID-19 and foreign exchange headwinds appear to be stifling its growth in FY 2021, management remains very positive on the future.

It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%. This is expected to be achieved thanks to geographic expansions, new growth initiatives, and the quality of its technology.

One broker that has become bullish on the company is Goldman Sachs. It has just upgraded Nearmap’s shares to a buy rating with a $2.75 price target.

It commented: “NEA appears fairly valued relative to its A/NZ peer group but is attractively priced relative to US software peers with similar revenue growth + EBITDA margin outlooks.”

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 explosive ASX tech shares to buy in February appeared first on The Motley Fool Australia.

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