Insights

2 quality ASX 200 tech shares that might be buys

There are some S&P/ASX 200 Index (ASX:XJO) tech shares that might be long-term buys at the current share prices right now.
The post 2 quality ASX 200 tech shares that might be buys appeared first on The Motley Fool Australia. –

Tech shares in the S&P/ASX 200 Index (ASX: XJO) could be worth looking at because of the underlying growth that they’re achieving.

Businesses that have fallen a bit in recent times might be better value than a few weeks ago.

Hub24 Ltd (ASX: HUB)

The Hub24 share price has fallen by around 10% over the last month.

It’s currently rated as a buy by the broker Credit Suisse which has a price target on Hub24 of $27.70.

Hub24 is one of the larger ASX fintech businesses. The Hub24 platform offers advisers and their clients a large range of investment options including managed portfolios, enhanced transaction and reporting functionality.

It also owns HUBconnect, which focuses on leveraging data and technology to provide solutions to challenges for licensees and advisors, and helps with the delivery of professional advice to Australians.

Hub24 recently revealed its update for the quarter to 31 March 2021. It experienced a record quarter of net inflows of $1.9 billion, which was an increase of 41% year on year and $0.2 billion higher than the last quarter.

Its funds under administration (FUA) is now $51.4 billion, including the acquisition Xplore Wealth which contributed $17.2 billion as at 31 March 2021 with platform FUA of $35.6 billion (up 136% year on year).

The ASX 200 tech share’s new business pipeline continues to grow with 28 new licensee agreements signed during the March quarter, with large boutique licensees, self-licensed practices and a new distribution agreement with an existing Xplore client where additional Hub24 products will be offered alongside the current Xplore solutions.

According to Credit Suisse’s forecast, the Hub24 share price is valued at 49x FY22’s estimated earnings.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price has also fallen around 10% over the last month.

It’s Australia’s largest enterprise software company with offices across six countries. It provides a global software as a service (SaaS) enterprise resource planning (ERP) solution to help customers get access to high-quality software anytime. It has over 1,200 corporations, government agencies, local councils and universities as clients.

UBS currently rates TechnologyOne shares as a buy with a price target of $9.15. UBS likes the Australian government growth, stronger UK position and the SaaS growth.

The business is due to hand in its FY21 half-year result this week, but the FY20 result included a number of growth measures. TechnologyOne saw underlying profit before tax increase by 13% for the year. SaaS annual recurring revenue (ARR) grew by 32% to $134.6 million.

TechnologyOne explained that its SaaS ERP solution helped when COVID-19 hit. Customers could seamlessly shift to remote working. Management said that COVID-19 has reinforced the significant value proposition of its software.

In FY20 the ASX 200 tech share continued to win new, large enterprise competitors. More than 30 organisations replaced its competitors’ systems, including from Oracle, SAP and Microsoft.

As the broker pointed out, it continues to dominate in the local government sector. It has closed 40 major deals with more than $45 million in total contract value. It now has more than 300 council customers. According to UBS, it’s valued at 38x FY21’s estimated earnings.

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.

*Returns as of February 15th 2021

More reading

5 things to watch on the ASX 200 on Monday

ASX gold shares can thank bitcoin for their brightening outlook

These were the best performers on the ASX 200 last week

These were the worst performers on the ASX 200 last week

ASX 200 rises, Kogan sinks, EML soars

The post 2 quality ASX 200 tech shares that might be buys 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!