Are you interested in gaining exposure to the tech sector in 2021? While there are a good number of quality options to choose from, two of the best could be listed below.
Here's what you need to know about these tech shares:
Altium Limited (ASX: ALU)
The first ASX tech share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years, Altium has earned itself a leading position in a growing electronic design market. But management certainly isn't resting on its laurels and is now aiming to dominate this market with its cloud-based Altium 365 product.
At the end of FY 2020, Altium had a total 51,006 subscriptions and was generating revenue of US$189.1 million. Looking ahead, management appears confident this strong demand will continue and is aiming to double its subscriptions to 100,000 and grow its revenue by 164% to US$500 million by FY 2025/26.
Credit Suisse is positive on the company and recently initiated coverage on Altium with an outperform rating and $42.00 price target.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a donor management and community engagement provider to the church market. It has been an impressive performer during 2020, thanks partly to favourable tailwinds from the COVID-19 pandemic.
These tailwinds underpinned a very strong result in FY 2020 and an even stronger result during the first half of FY 2021. Pushpay's half year results revealed a 53% increase in operating revenue to US$85.6 million and an even more impressive 177% jump in EBITDAF to US$26.7 million.
The good news is that management appears confident this growth can continue and has set itself bold long term targets. This includes winning a 50% share of the U.S. medium to large church market, which is estimated to be worth US$1 billion a year.
One of the keys to achieving this will be the recent launch of ChurchStaq. It is the combination of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and ChMS to deliver a fully integrated engagement platform.
Goldman Sachs is a big fan of Pushpay. The broker has a conviction buy rating and $2.59 price target on its shares.
