One area of the market which has performed very strongly in recent years, and has been tipped to continue doing so in the future, is the tech sector.
In light of this, I don't think it is surprising that tech shares are among the most popular shares on the share market.
But which ones should you buy? To help narrow things down, I have picked out two shares in the sector that come highly rated. They are as follows:
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Life360 Inc (ASX: 360)
The first tech share to look at is app maker Life360. Its mobile app is a market leading platform for families, with features that range from communications to driving safety and location sharing. The San Francisco-based company had more than 25 million monthly active users (MAU) at the end of September across 195 countries.
One broker that has been pleased with its development is Bell Potter. It was the broker's top pick in the tech sector for 2021. Bell Potter notes that the company is carving out a significant global footprint with its family app at the core. The broker also believes it will benefit greatly once the pandemic passes and people are on the move again.
It commented: "The company delivered a significant membership feature launch in the middle of 2020, and the benefits of this are set to flow through over the medium-term. As a location sharing app, we see this as a COVID recovery stock, as when people start moving around again (particularly in the key US market), we anticipate the usage to increase."
Bell Potter has a buy rating and lofty $7.70 price target on its shares.
Nuix Limited (ASX: NXL)
Nuix is a leading provider of investigative analytics and intelligence software with a vision of "finding truth in a digital world." It helps customers across different industry verticals globally to process, normalise, index, enrich, and analyse data from different sources.
The company's software has been used in a number of important investigations in the past. This includes the Panama Papers, the Banking Royal Commission, organised crime rings, corporate scandals, and terrorist activities.
Demand has been very strong for its services, even during the pandemic. This led to Nuix reporting a 25.9% increase in total revenue to $175.9 million in FY 2020. This revenue is largely from subscriptions, with subscription revenues now accounting for 88.7% of its total revenue.
Morgan Stanley currently has an overweight rating and $11.00 price target on the company's shares.
