Top broker thinks these ASX tech shares are buys

These tech shares could be in the buy zone…
The post Top broker thinks these ASX tech shares are buys appeared first on The Motley Fool Australia. –

If you’re wanting to boost your portfolio with a couple of growth shares, then you may want to consider the tech shares listed below.

Here’s why these ASX tech shares have been rated as buys by Goldman Sachs:

REA Group Limited (ASX: REA)

The first ASX tech share to look at is REA Group. It is of course the market leader in online real estate listings in the Australian market.

In FY 2021, REA Group was recording an average of 121 million monthly visits to its website. This was a 35% increase year on year and 3.3x more visits that its nearest competitor is receiving.

This leaves the company well-positioned to benefit from the current housing market boom, which is driving growth in listing volumes again. Combined with price increases, new revenue streams, and acquisitions, this bodes well for the company’s performance in FY 2022 once lockdowns end.

Goldman Sachs is very bullish on REA Group. It has a buy rating and lifted its price target to a lofty $190.00.

Xero Limited (ASX: XRO)

Another ASX tech share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution.

In FY 2021, Xero recorded a 20% increase in subscribers to 2.74 million. This was driven by a 20% increase in ANZ subscribers to 1.56 million and a 21% increase in International subscribers to 1.18 million. In respect to the latter, this includes 720,000 subscribers in the UK market.

While this may sound like a large number, it is still only scratching at the surface of its market opportunity. Management estimates that it total addressable market is currently 45 million subscribers.

In addition to this, the company’s growth should be boosted by its growing app ecosystem. Goldman Sachs believes that if Xero can monetise this ecosystem and execute its international expansion successfully, it has the potential to underpin growth for a long time to come.

The broker is very positive on the company and has a buy rating and $165.00 price target on its shares.

The post Top broker thinks these ASX tech shares are buys appeared first on The Motley Fool Australia.

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Top brokers name 3 ASX shares to buy next week

2 ASX growth shares brokers love

Why the Xero (ASX:XRO) share price has climbed 5% in a month
ASX tech shares lagging the ASX 200 on Thursday

Xero (ASX:XRO) share price edges lower after annual meeting

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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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