3 tech shares to buy this June

In the last month the information technology sector has been one of the best-performing sectors on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) posting a gain of 5.5%.

But before you start thinking that you may have missed the boat on these gains, let me point out that in the last 12 months the sector is down by around half a percent. So in my opinion, this tech rally is only just starting.

Three tech shares which I believe could be great buys in June are as follows:

Aconex Ltd (ASX: ACX)

Aconex is a growing technology disruptor providing an online collaboration platform for construction and engineering projects. The company has over 60,000 user organisations which have delivered $1 trillion worth of project value across 70 countries.

During the last quarter the company acquired Conject Holding GmbH. Conject is a leading cloud and mobile collaboration service provider in Europe and should boost its presence in the region.

Every other day I seem to read how another broker has upgraded the target price on this exciting company’s shares. One of the more recent upgrades was from Swiss giant UBS. It upgraded Aconex’s price target to $7.20, implying further upside of around 11%.

iSentia Group Ltd (ASX: ISD)

Founded in 1982 by Sydney advertising pioneer Neville Jeffress, iSentia has grown from being a small family business into a global leader in the delivery of crucial business intelligence. It now operates 18 offices around the world and employs over 1,200 people.

A lot of this growth is due to its fantastic and hugely popular Mediaportal platform. iSentia’s flagship communications platform provides a cloud-based workspace delivering news as and when it happens, as well as analytics and reporting tools.

According to CommSec, it is expected to grow its earnings by a whopping 71% this year. With the shares changing hands at 23x estimated FY 2016 earnings, I believe they are reasonably priced considering its strong level of growth.

Nextdc Ltd (ASX: NXT)

NEXTDC operates data centres in five of Australia’s largest cities. As more and more data is generated and consumed, I believe demand for storage and access to it will grow at an increasingly rapid rate.

In its half year results the company delivered strong revenue growth of 51% year-on-year to $42.1 million. Net profit after tax came in at $0.6 million, a big improvement from a $5.8 million loss in the previous corresponding period.

The company just announced that it has secured new sites in Melbourne and Brisbane. Both sites have strategic advantages which I believe should help with the company’s growth.

The Melbourne site is located in Tullamarine, close to a major electricity substation and telecommunications infrastructure. Whereas the Brisbane site is located in Fortitude Valley on the fringe of the CBD and close to a major electricity substation, as well as significant telecommunications and public transport infrastructure.

As the company scales up, I believe it will become more and more profitable. This could make NEXTDC a great long-term tech investment in my opinion.

If you'd like even more ideas for what to buy in June then take a look at these 3 new breed blue chip shares. I feel there is a chance of share price gains in the next few months.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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