There are a number of companies in the tech sector that are expected to grow at a strong rate in the future.
Two that you might want to get better acquainted with are listed below. Here’s what you need to know about them:
Life360 Inc (ASX: 360)
The first ASX tech share to look at is San Francisco-based app maker Life360.
It provides families with a market leading app which includes features such as real-time location sharing and notifications and Crash Detection and Roadside Assistance. These features are clearly resonating well with families, with Life360 recently revealing 28 million monthly active users.
Pleasingly, the company has just announced the acquisition of Jiobit for US$37 million. The addition of the provider of wearable location devices is very supportive of its growth strategy and opens up cross-selling opportunities.
Credit Suisse is a fan of the company and believes it is well-placed for growth. The broker currently has an outperform rating and $8.30 price target on its shares. This compares to the latest Life360 share price of $5.75.
Nearmap Ltd (ASX: NEA)
Another ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.
Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.
Nearmap has been growing at a strong rate over the last few years thanks to increasing demand for its services in the ANZ and North American markets. Positively, this has continued in FY 2021, with the company upgrading its guidance today.
Looking ahead, management appears confident that it is well-positioned for growth thanks to its recent $90 million capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
Citi is bullish on the company. It currently has a buy rating and $3.10 price target on its shares. This compares to the latest Nearmap share price of $2.06.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Life360, Inc. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.