Are you looking to take advantage of recent weakness in the tech sector? If you are, then you might want to consider buying one of these beaten down tech shares.
Here's why they could be top options right now:
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Appen Ltd (ASX: APX)
The first tech share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI).
Appen uses a million-strong crowd sourced team of experts to prepare the data that goes into the AI models of some of the largest tech companies and governments in the world.
Given how these markets are expected to continue their strong rise for many years to come, Appen looks well-placed to deliver above-average growth over the next decade.
Ord Minnett is positive on the company, particularly given the recent pullback in its share price. The broker has a buy rating and $24.75 price target on its shares. This compares to the current Appen share price of $16.38.
Nanosonics Ltd (ASX: NAN)
Nanosonics is a healthcare technology company with a focus on infection control. The company is currently a one-trick pony with its trophon EPR disinfection system for ultrasound probes. This technology is widely regarded as the best in its class and has been consistently winning market share in the United States and internationally over the last decade.
This has led to strong unit sales and even stronger recurring revenue growth over the period. The latter is due to the fact that its systems require consumables to function. This means that as its footprint grows, so too does demand for consumables.
Pleasingly, although it has been hit by countless delays, Nanosonics is planning to launch new products which have similar addressable markets. If they are even half as successful as the trophon system, then the future could be very bright for Nanosonics.
UBS currently has a buy rating and $7.00 price target on its shares. This compares to the latest Nanosonics share price of $5.67.
