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2 rapidly growing ASX tech shares to buy

Xero Limited (ASX:XRO) and this ASX tech share could be the ones to buy for 2021 and beyond. Here’s what you need to know…
The post 2 rapidly growing ASX tech shares to buy appeared first on The Motley Fool Australia. –

asx shares involved with cloud tech represented by illuminated cloud on circuit board

There are a large number of growth shares for investors to choose from on the Australian share market.

Two in the tech sector that come highly rated are listed below. Here’s why they have recently been named as shares to buy:

Pushpay Holdings Ltd (ASX: PPH)

The first tech share to look at is Pushpay. It is a fast-growing donor management and community engagement provider to the church market.

Thanks to the quality of its platform, its leadership position in the market, and the shift to a cashless society, Pushpay has been growing at a very strong rate.

For example, the company recently released its half year results and revealed a 48% increase in total processing volume to US$3.2 billion. This led to Pushpay reporting a 53% increase in operating revenue to US$85.6 million and, thanks to the further widening of its margins, EBITDAF growth of 177% to US$26.7 million.

This strong form and its long runway for growth has caught the eye of analysts at Goldman Sachs. They have put a conviction buy rating and $2.59 price target on the company’s shares. Based on the current Pushpay share price of $1.68, this price target implies potential upside of over 54%.

Xero Limited (ASX: XRO)

Another tech share to look at is Xero. It is a leading New Zealand-based cloud-based business and accounting software provider.

Thanks to its successful evolution from an accounting platform into a full service small business solution over the last few years, the company has been growing its customer numbers and revenues at a rapid rate.

For example, at the last count Xero had 2.45 million subscribers and was generating half year operating revenue of NZ$409.8 million from them.

The good news is that due to the quality of its offering, the shift to the cloud, its global market opportunity, and burgeoning app ecosystem, Xero has been tipped for more of the same in the future.

Goldman Sachs is very positive on its prospects and recently put a buy rating and $157.00 price target on its shares.

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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 PUSHPAY FPO NZX and Xero. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 rapidly growing ASX tech shares to buy appeared first on The Motley Fool Australia.

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