The Australian technology sector is growing rapidly. It is home to a growing number of ASX tech shares, many with an expanding international presence.
Here we look at why these three ASX tech shares are all currently on my buy list.
3 ASX tech shares to buy now
Altium Limited (ASX: ALU)
Altium designs software that enables engineers to produce printed circuit boards for a broad range of devices. This includes a growing number of interconnected devices that make up what is known as as the ‘internet of things’ (IoT).
Altium’s recent financial performance has been very strong, despite subdued market conditions due to the coronavirus pandemic. Altium achieved a very solid 10% increase in revenue to US$189 million during FY 2020. Its customer base also grew strongly, up by 17% during the 12 month period.
The Altium share price was hit hard in the first phase of the pandemic, before which it was trading at levels above $40. Since then, however, it has only made a partial recovery and is currently trading at $32.99. This in my mind, offers investors a good buying opportunity.
Bravura Solutions Ltd (ASX: BVS)
Bravura provides mission-critical enterprise software solutions to the wealth management and funds administration industries.
The Bravura share price has risen strongly since the beginning of 2018, rising from $1.73 to now be trading at $4.22. However, like Altium, this ASX tech share has only partially recovered from its initial sharp fall during February/March bear market. Investors are therefore offered the opportunity to purchase shares in this high quality fintech provider at a more attractive price.
I believe Bravura is well place for strong growth over the next few years, driven by an expanding product set and market-leading position in its operating niche.
Audinate Group Ltd (ASX: AD8)
Another ASX tech share on my buy list right now is Audinate. This locally-based company provides audio networking solutions that are used in the production of a range of professional audio equipment.
A recent capital raising set to deliver $40 million will strengthen Audinate’s balance sheet. It will also increase its engineering and R&D capabilities to support future growth opportunities.
I believe that, despite current challenges, this ASX tech share is now well positioned for long-term growth, driven by its market leading audio solutions. The Audinate share price is currently trading more than 43% below its pre-pandemic levels which provides investors with a good, long-term buying opportunity.
Altium, Bravura and Audinate are three high quality ASX tech shares that have seen falls in their share prices this year. With long runways for future growth, astute long-term investors now have the opportunity purchase shares at more attractive prices.
These 3 stocks could be the next big movers in 2020
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Phil Harpur owns shares of Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended AUDINATEGL FPO. 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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