Due to recent weakness in the technology sector, now could be an opportune time to consider long term investments in the space. Two stellar ASX tech shares that could be great long term options are listed below. Here's why they are highly rated:
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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. PCBs are the circuit boards you find in almost all electronic devices.
Positively for Altium, with the number of electronic devices exploding globally because of technological advances, demand for its software has been growing very strongly and looks set to continue doing so for some time to come.
Management certainly believes this will be the case. It is aiming to achieve subscriptions of 100,000 and grow its revenue to US$500 million by FY 2025/26. This compares to FY 2020's ~51,000 subscriptions and revenue of US$189.1 million.
Credit Suisse is positive on the company. It recently retained its outperform rating and $35 price target on Altium's shares.
Pushpay Holdings Group Ltd (ASX: PPH)
Another ASX tech share to look at is Pushpay. It is a donor management and community engagement provider with a focus on the church market.
While Pushpay was growing at a rapid rate before COVID-19, the pandemic has given its growth a lift over the last 12 months. This is because COVID has accelerated the digitisation of the church and led to a surge in demand for its offering.
Whether or not this has pulled forward sales from future periods is difficult to say, so the company's growth could potentially slow in FY 2022. But it certainly appears to be worth sticking with the company due to its long term growth potential.
Like Altium, Pushpay has set itself bold aspirational targets. It is aiming to win a 50% share of the medium to large church market in the United States. Management estimates this to be worth US$1 billion in revenue. This is almost six times greater than the annualised revenue of US$85.6 million it delivered in the first half of FY 2021.
Goldman Sachs is positive on the company's growth trajectory. So much so, the broker has a conviction buy rating and a $2.59 price target on its shares.
