These tech shares could have bright futures…
The post 2 highly rated ASX tech shares tipped for strong long term growth appeared first on The Motley Fool Australia. –
If you’re interested in gaining some exposure to the tech sector, then you might want to take a look at these highly rated options.
Both of the tech shares listed below have been tipped to grow strongly over the long term. Here’s what you need to know about them:
Dubber Corp Ltd (ASX: DUB)
The first tech share to look at is Dubber. It is a software company that provides businesses with a scalable call recording service. This service has been adopted as core network infrastructure by multiple global leading telecommunications carriers in North America, Europe and the Asia Pacific.
The company’s cloud-based technology allows businesses to record, manage, and analyse their phone calls and communications.
Demand for its offering has been growing strongly over the last couple of years, leading to a significant increase in active customers and revenue. This was on show in its recent third quarter update, which revealed a 20% increase in annualised recurring revenue (ARR) over the three months to $34 million. This was also a 158% increase over the prior corresponding period.
Since then, Dubber has signed a potentially game-changing deal with global giant Cisco. This will see Cisco Webex Calling and Cisco Unified Communications Manager Cloud (UCM) now include Dubber call recording as part of all services at no additional cost to users. This gives Dubber significant upselling opportunities.
Shaw and Partners currently has a buy rating and $3.03 price target on its shares. This may mean investors would be best waiting for a pullback before considering an investment.
Nearmap Ltd (ASX: NEA)
Another ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.
Its technology shifts location analysis out of the field and into the office, providing businesses with the tools to scale quickly and bring their most important initiatives to life.
Thanks to increasing demand for its services in North America, Nearmap has been growing at a solid rate in FY 2021. So much so, it recently upgraded its Annual Contract Value (ACV) guidance to between $128 million and $132 million from between $120 million and $128 million. This will be a 20% to 24% increase from $106.4 million in FY 2020.
Looking ahead, management appears confident in its growth trajectory. 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%.
Morgan Stanley remains bullish on the company despite its recent legal issues. It currently has an overweight rating and $3.20 price target on its shares.
The post 2 highly rated ASX tech shares tipped for strong long term growth appeared first on The Motley Fool Australia.
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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 Dubber Corporation and Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Dubber Corporation and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.