Could these ASX tech shares offer strong long term returns?
The post 2 high quality ASX tech shares tipped as buys appeared first on The Motley Fool Australia. –
If you’re looking for shares to buy, then the tech sector could be a great place to start. In this sector there are a number of companies with the potential to grow strongly over the next 10 years.
With that in mind, I have picked out two top tech options to consider. Here’s what you need to know about them:
Altium Limited (ASX: ALU)
The first ASX tech share to look at is this printed circuit board (PCB) focused electronic design software provider.
While COVID-19 appears to be weighing on demand in the near term, Altium appears well-positioned for long term growth once it passes. This due to its industry-leading platform and a number of tailwinds which are underpinning increasing demand for electronic design software.
These tailwinds include the rapidly growing artificial intelligence and internet of things markets, which are leading to a proliferation of electronic devices globally. And as the vast majority of electronic devices have PCBs inside them, this bodes well for Altium.
Citi is positive on Altium and currently has a buy rating and $33.50 price target on its shares. The broker believes Altium is nearing the end of the COVID-19 related downgrade cycle and well-placed for growth over the long term.
Life360 Inc (ASX: 360)
Another ASX tech share to look at is San Francisco-based app maker Life360. It provides families with a market leading app which includes features such as real-time location sharing and notifications and Crash Detection and Roadside Assistance.
Based on the 28 million monthly active users the company has, these features appear to be resonating well with families.
Pleasingly, the company has just strengthened its offering further. This was achieved through the the acquisition of Jiobit for US$37 million. Management notes that the addition of the wearable location device provider is very supportive of its growth strategy and opens up cross-selling opportunities.
Credit Suisse is a big fan of the company. The broker currently has an outperform rating and $8.30 price target on its shares. It has been pleased with its performance in recent quarters and believes the opportunity to further monetise its user base is becoming increasingly clear.
Wondering where you should invest $1,000 right now?
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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
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