Top broker slaps $9.10 price target on Altium Limited shares

In afternoon trade the Altium Limited (ASX: ALU) share price is on course to finish the week in the red.

At the time of writing the print circuit board (PCB) design software provider’s shares are down 4% to $8.21.

Does this make them a buy?

According to one leading broker it does. A research note out of Deutsche Bank this morning reveals that its analysts have reiterated their buy rating and raised their price target for Altium’s shares to $9.10.

Based on its current share price, this implies potential upside of almost 11% for its shares.

Deutsche appears confident that despite the strong Australian dollar, the company’s full-year top line guidance is achievable thanks to solid economic conditions.

Altium is due to release its full-year results on August 28.

Should you invest?

I think that Altium is up there with the likes of Aconex Ltd (ASX: ACX) and XERO FPO NZX (ASX: XRO) as one of the best tech shares on the Australian share market.

Thanks to the incredible rise of connected devices due to the Internet of Things phenomenon, I expect demand for its design software will grow strongly over the next decade.

This should put the company in a position to deliver on its target of almost doubling revenue to US$200 million by FY 2020, making it a great buy and hold investment option today.

Finally, like Altium, these three growth shares could also be great buy and hold investments if you ask me.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO, Altium, and Xero. 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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