Insights

2 explosive ASX tech shares to buy in January

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. –

man holding light bulb next to growing piles of coins

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

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.

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

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!