These tech shares could be ones to buy…
The post Broker names the 3 best ASX tech shares to buy appeared first on The Motley Fool Australia. –
If you’re interested in investing in the tech sector, then you may want to look at the three ASX tech shares listed below.
These tech shares are the ones that the team at Bell Potter believe are the top three options in the sector right now.
Here’s what you need to know:
Nitro Software Ltd (ASX: NTO)
This document productivity software company is now the broker’s number one pick in the sector, partly for valuation reasons.
It commented: “[Nitro] Moves up to our number one pick given the slight pullback in share price following the 1H2021 result – which was good but not great – and our expectation the next few results (i.e. 2H2021, 1H2022 and 2H2022) will all show strong top line growth on the back of the increase in sales staff in 1H2021 and also the recent commencement of charging for eSigning.”
Bell Potter currently has a buy rating and $4.00 price target on Nitro’s shares.
Infomedia Limited (ASX: IFM)
The broker is also a big fan of this leading global provider of software as a service solutions to the parts and service sector of the automotive industry.
Bell Potter explained: “A new key pick following the better than expected outlook and guidance for FY22 which suggests a return to reasonable if not good organic growth in FY22 after this was relatively low in FY21 due mostly to the impacts of COVID-19 and, in particular, global shutdowns and travel restrictions.”
Its analysts have a buy rating and $2.00 price target on Infomedia’s shares.
Life360 Inc (ASX: 360)
Finally, this fast-growing family focused app maker remains in the broker’s top three sector picks.
The broker said: “[Life360] Remains a key pick but moves down to number three following the strong share price performance though we believe good upside remains with the company expected to be a key beneficiary of country’s reopening – particularly in the US – and the likelihood of a material M&A transaction in the coming months which may help better monetise the large active user base. “
Bell Potter has a buy rating and $10.75 price target on Life360’s shares.
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*Returns as of August 16th 2021
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 Infomedia and Life360, Inc. The Motley Fool Australia has recommended Infomedia and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.