If you’re looking for growth shares to buy, then the tech sector could be a great place to search. At this side of the market there are a number of companies with the potential to grow materially over the next decade.
With that in mind, I have picked out two top tech options to consider. Here’s what you need to know about them:
Nitro Software Ltd (ASX: NTO)
The first tech share to look at is Nitro. It is a global document productivity company helping businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation.
This is achieved by providing PDF productivity and eSigning for all in a single, affordable solution.
At present, Nitro is helping more than 11,000 businesses globally drive digital transformation. This includes 68% of the Fortune 500 and three of the Fortune 10.
Demand for its offering continues to grow and is underpinning strong recurring revenue growth. For example, Nitro’s guidance for FY 2021 is ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.
Morgan Stanley is bullish on the company. Its analysts currently have an overweight rating and $3.70 price target on the company’s shares.
Another ASX tech share to look at is Xero. Over the last few years it has evolved from an accounting platform provider into a full service cloud-based business and accounting solution to small and medium sized businesses globally.
This evolution has been a huge success and underpinned very strong customer and revenue growth. Positively, Xero still has a long runway for growth over the next decade, or decades, according to analysts at Goldman Sachs.
This is thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem. It is the latter that Goldman Sachs is most positive on. It believes Xero could have a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.
Goldman has a buy rating and $153.00 price target on its shares.