If you’re wanting to take advantage of recent weakness in the tech sector, then you might want to look at the shares listed below.
These ASX tech shares come highly rated right now. Here’s why:
Appen Ltd (ASX: APX)
The first ASX tech share to look at is this global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence.
Appen works and has worked with some of the biggest tech companies in the world. This includes Facebook, Microsoft, and Apple. In respect to the latter, Appen helped with the development of its Siri smart assistant.
The company also has a strong position in the government sector thanks to its acquisition of Figure Eight. This is a big positive as governments across the world are investing billions into artificial intelligence.
And while demand has softened during the pandemic due to the postponement of many projects, it is expected to rebound strongly once the crisis passes.
One broker that is positive on Appen is Citi. It currently has a buy rating and $30.90 price target on its shares. This compares to the current Appen share price of $15.17.
Pushpay Holdings Group Ltd (ASX: PPH)
Another ASX tech share that is highly rated is Pushpay.
It is a payments company with a focus on the church market. Pushpay’s platform brings churches into the digital age with donation and community engagement solutions.
While Pushpay was already growing at a rapid rate before COVID-19, the pandemic has given its growth a lift over the last 12 months. This is due to the pandemic accelerating the digitisation of the church, leading 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 Pushpay due to its long term growth potential.
Especially given management’s bold aspirational targets. It is aiming to win a 50% share of the medium to large church market in the United States. This is estimated to be worth a massive 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 bullish on Pushpay. It has a conviction buy rating and a $2.59 price target on its shares. This compares to today’s Pushpay share price of $1.71.