Appen Ltd (ASX:APX) and this ASX tech share have been named as ones to buy right now. Here’s what you need to know…
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If you’re currently searching for a couple of tech shares to add to your portfolio, then you could do a lot worse than the ones listed below.
Here’s why these ASX tech shares come highly rated right now:
Appen Ltd (ASX: APX)
The first ASX tech share to look at is this global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Appen works closely with some of the biggest tech companies in the world and has a strong position in the government sector through its Figure Eight business.
Its shares have come under significant pressure recently after it revealed that COVID-19 headwinds were stifling its growth. So much so, the Appen share price is currently trading 48% lower than its 52-week high. Which based on a note out of Macquarie this month, means its shares are currently trading at approximately 31x estimated FY 2021 earnings. The broker appears to believe that this is a buying opportunity for investors that are prepared to make a long-term investment.
Macquarie is expecting demand for Appen’s services to rebound strongly in 2021 and underpin strong earnings growth. In light of this, it recently reiterated its outperform rating and put a $27.00 price target on its shares.
Nearmap Ltd (ASX: NEA)
Another ASX tech share to look at is Nearmap. It is a leading aerial imagery technology and location data company. Nearmap gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means users can undertake site visits from the comfort of their home or workplace, which offers both significant time and cost savings.
Management appears confident that it is well-positioned for growth thanks to its recent $90 million capital raising and new growth initiatives. 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 is positive on the company’s future. The broker currently has an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.
Where to invest $1,000 right now
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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.
*Returns as of June 30th
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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 Appen Ltd and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.