ELMO Software Ltd (ASX:ELO) and this ASX tech share could be ones to buy in January. Here’s why they are rated highly…
The post 2 explosive ASX tech shares to buy in January appeared first on The Motley Fool Australia. –
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.
Bigtincan Holdings Ltd (ASX: BTH)
The first tech share to look at is Bigtincan. Its sales enablement software platform provides businesses with the information, content, and tools to sell more effectively. Demand for the company’s platform has been growing strongly in recent years and continued to do so during the pandemic. This led to it recording strong recurring revenue growth in FY 2020.
Pleaisngly, this strong form has continued in FY 2021. Management is expecting annualised recurring revenue (ARR) to be in the range of $49 million to $53 million this year. This represents a 37% to 48% increase year on year.
One broker that is positive on the company is Canaccord Genuity. It has been pleased with its positive start to FY 2021 and put a buy rating and $1.40 price target on its shares.
ELMO Software Ltd (ASX: ELO)
Another growing tech share to look at is ELMO. It is a cloud-based human resources and payroll software company that provides businesses with a unified platform to streamline processes such as employee administration, recruitment, and payroll.
Like Bigtincan, ELMO has been a strong performer during the pandemic and looks well-placed to continue this trend in the future. Especially given the strong demand it is experiencing for its platform and management’s penchant for making earnings accretive acquisitions.
One of those acquisitions was the recent $32 million acquisition of UK-based Breathe. This acquisition is expected to provide ELMO with market expansion and cross sell opportunities.
Morgan Stanley is a fan of ELMO and believes it is well-placed for growth. The broker has an overweight rating and $9.30 price target on its shares at present.
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- 2 quality ASX growth shares to buy for 2021
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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. owns shares of and recommends BIGTINCAN FPO and Elmo Software. The Motley Fool Australia has recommended BIGTINCAN FPO and Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.