2 of the best ASX tech shares to buy and hold

Here’s why Xero Limited (ASX: XRO) and this fantastic ASX tech share could be great buy and hold options for investors…
The post 2 of the best ASX tech shares to buy and hold appeared first on The Motley Fool Australia. –

Investor with palm up and graphic illustration of asx small cap tech shares charts shooting from his hand

There are a good number of tech companies on the Australian share market that have been growing at an above-average rate over the last few years.

And while the pandemic may have put a dampener on the growth of some of these companies, once the pandemic passes they look well-placed to resume their positive form.

Two ASX tech shares that could be fantastic buy and hold options are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

Altium is the leading provider of printed circuit board (PCB) focused electronic design software. Its platform is the clear leader in the industry and counts many of the world’s largest companies as customers. This includes BAE Systems, Dell, Microsoft, and Tesla.

The good news for the company and its shareholders is that demand for its platform looks likely to increase materially in the coming decades. This is due to the artificial intelligence and internet of things booms. These are underpinning a proliferation of electronic products globally.

Analysts at UBS are positive on the company’s future. Last month they upgraded Altium’s shares to a buy rating with a $34.00 price target. This compares to the latest Altium share price of $26.97.

Xero Limited (ASX: XRO)

Xero is a provider of a cloud-based business and accounting solution. It is used by small to medium sized businesses around the world to handle a full suite of tasks. This includes accounting, payroll, and invoicing.

In addition to this, the company has been making bolt-on acquisitions to bolster its offering and looks likely to make more in the future. Late last year Xero raised US$700 million via a convertible notes offering.

Another big positive is its growing ecosystem of apps that work within its platform. Goldman Sachs believes that the company has a massive opportunity to monetise this and drive strong revenue growth over the coming decades.

In light of this, the broker has currently got a buy rating and $157.00 price target on its shares. This compares to the latest Xero share price of $122.53.

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 February 15th 2021

More reading

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

The post 2 of the best ASX tech shares to buy and hold 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!