There are a good number of tech companies on the Australian share market that have been growing at an above-average rate over the last few years.
And while the pandemic may have put a dampener on the growth of some of these companies, once the pandemic passes they look well-placed to resume their positive form.
Two ASX tech shares that could be fantastic buy and hold options are listed below. Here's what you need to know about them:
Altium Limited (ASX: ALU)
Altium is the leading provider of printed circuit board (PCB) focused electronic design software. Its platform is the clear leader in the industry and counts many of the world's largest companies as customers. This includes BAE Systems, Dell, Microsoft, and Tesla.
The good news for the company and its shareholders is that demand for its platform looks likely to increase materially in the coming decades. This is due to the artificial intelligence and internet of things booms. These are underpinning a proliferation of electronic products globally.
Analysts at UBS are positive on the company's future. Last month they upgraded Altium's shares to a buy rating with a $34.00 price target. This compares to the latest Altium share price of $26.97.
Xero Limited (ASX: XRO)
Xero is a provider of a cloud-based business and accounting solution. It is used by small to medium sized businesses around the world to handle a full suite of tasks. This includes accounting, payroll, and invoicing.
In addition to this, the company has been making bolt-on acquisitions to bolster its offering and looks likely to make more in the future. Late last year Xero raised US$700 million via a convertible notes offering.
Another big positive is its growing ecosystem of apps that work within its platform. Goldman Sachs believes that the company has a massive opportunity to monetise this and drive strong revenue growth over the coming decades.
In light of this, the broker has currently got a buy rating and $157.00 price target on its shares. This compares to the latest Xero share price of $122.53.
