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3 exciting tech shares to watch

I think at the small end of the ASX there are a lot of quality options for investors.

This is especially the case in the tech sector where there are several exciting shares showing enormous promise.

Three up and comers that I think investors should be keeping a close eye on are listed below. Here’s why:

Citadel Group Ltd (ASX: CGL)

I think that Citadel Group is a great option in the tech sector right now. It is a software and services company providing integration and managed services solutions to state and federal governments and the private sector in Australia. The company operates with industry leading margins and has strong growth prospects in key national security, defence, and health sectors. One key product which I expect to grow in popularity in the future is its Citadel-IX offering. This product combines enterprise content management (ECM), secure cloud-based technology, value add software, premium service management and expert ECM knowledge as a secure, scalable, and robust solution. Thanks to this and its other products, I expect Citadel to be in a position to deliver solid earnings growth over the long-term.

LiveTiles Ltd (ASX: LVT)

LiveTiles is a global software company that offers intelligent workplace software for the commercial, government, and education markets. Its products include LiveTiles Intelligent Workplace, LiveTiles Design, LiveTiles Bots, LiveTiles Intelligence, and Hyperfish. Demand for its products has been growing fast this year thanks partly to their quality but also due to the engagement of a dedicated sales and marketing team. This led to the company recently reporting a 275% increase in annualised recurring revenues (ARR) to $15 million. I’m expecting similarly strong growth in FY 2019, making it a share to watch.

Megaport Ltd (ASX: MP1)

Megaport founder Bevan Slattery certainly has a strong track record when it comes to tech startups. He has been the brains behind PIPE Networks, NEXTDC Ltd (ASX: NXT), Superloop Ltd (ASX: SLC), and Cloudscene. Although chronologically Megaport came between NEXTDC and Superloop, it is only now that the market is starting to see its true potential. Megaport is a provider of elasticity connectivity and network services and looks set to be a big winner from the cloud computing boom. It uses its software to streamline the internet connection between its customers’ data centres and major cloud service providers. With this vital service growing in popularity by the day, I expect Megaport could be a great buy and hold investment.

These 3 stocks could be the next big movers in 2020

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*Returns as of 6/8/2020

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of Citadel Group Ltd. 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 Scott Phillips.

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