Here are three options in the tech space…
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The tech sector has been out of form this year and is significantly underperforming the rest of the market. However, with investors flooding back into the sector, the second half of the year could be much more positive.
So if you’re looking to add a bit of tech exposure to your portfolio, you might want to take a look at these shares:
Kogan.com Ltd (ASX: KGN)
The first tech share to consider is Kogan. It is an ecommerce company which has been growing at a rapid rate over the last few years. This has been driven by the shift to online shopping, which accelerated during the pandemic. And while inventory issues have brought its earnings growth to an abrupt end during the second half of FY 2021, this is only expected to be a short term headwind. This could make the recent weakness in the Kogan share price a buying opportunity for investors.
Credit Suisse has an outperform rating and $17.93 price target on its shares.
Nitro Software Ltd (ASX: NTO)
Another tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools to customers. Demand has been growing strongly in recent years and has continued in FY 2021, underpinning stellar recurring revenue growth.
Morgan Stanley is bullish on the company. Its analysts currently have an overweight rating and $3.70 price target on Nitro’s shares.
PointsBet Holdings Ltd (ASX: PBH)
A final tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports betting products and services via its scalable cloud-based platform. It currently operates in the ANZ and United States markets and is generating significant revenue growth in both. Positively, thanks to its huge opportunity in the United States, it has been tipped to deliver very strong growth over the next decade.
Goldman Sachs is a big fan of PointsBet. It currently has a buy rating and $17.20 price target on its shares.
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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 Kogan.com ltd and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Nitro Software Limited and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.