The Altium Limited (ASX: ALU) share price finished today higher by 5.6%, making the electronic PCB software business one of the top ASX 200 performers.
It was joined by its ASX technology peers in the green. The Xero Limited (ASX: XRO) share price rose by 4.7%, the Afterpay Touch Group Ltd (ASX: APT) share price grew by 4.9%, the Appen Ltd (ASX: APX) share price went up by 1.6% and the WiseTech Global Ltd (ASX: WTC) share price gained 2.6%.
It seemed like the WAAAX shares might have another bad day with President Trump and the Democrats disagreeing over funding for his wall where he threatened to shut the government down.
But, the ASX tech sector roared upwards with Altium leading the way.
Goldman Sachs also issued a buy rating for Altium with a 12-month price target of $28.50, which still suggests a 30% upside at today's ending price of $21.82.
Some of the main reasons for the optimistic target include likely PCB market share gains due to superior products, a large addressable market for Altium's Octopart and an attractive value compared to its ASX tech peers.
The share price target for Altium may be optimistic, but it is certainly operating in a high-growth industry. Most of the best technology businesses in the world that you can think of use Altium's products including Tesla, Space X, NASA, Google, Cochlear Limited (ASX: COH), CSIRO, Amazon, Apple, Qualcomm, Microsoft and Siemens.
Foolish takeaway
I have been longing to top up my Altium holding for a while, but I haven't been able to justify a buy due to the high valuation.
After today's rise it's trading at 42x FY19's estimated earnings. I think Altium is one of the best growth shares on the ASX, but there may be better value buys out there at the moment.
