The tech sector has been underperforming in recent months. While this is disappointing, it has potentially created a buying opportunity for patient and long term focused investors.
Two ASX tech shares that are trading notably lower than their 52-week highs are listed below. Here's what you need to know about them:
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Adore Beauty Group Limited (ASX: ABY)
The Adore Beauty share price is down 44% from its 52-week high. This could make it worth considering an investment in Australia's leading online beauty retailer according to analysts at Morgan Stanley.
Late last month, the broker retained its overweight rating and $5.00 price target on its shares.
While Morgan Stanley suspects that Adore Beauty's growth may slow materially in the near term as it cycles heightened sales during the pandemic, it remains positive on the long term. This is due to Adore Beauty being the leader in a structural growth market.
The Adore Beauty share price is currently trading at $4.14.
Appen Ltd (ASX: APX)
Another beaten down ASX tech share to look at is Appen. The artificial intelligence (AI) data annotation products and solutions provider's shares are down 70% from their 52-week high.
This has been driven partly by concerns over demand for its services from some of its largest customers (due to COVID-19 headwinds) and its ability to achieve guidance in FY 2021.
While the near term could be tough, its long term outlook appears positive due to its leadership position in a growing market. Appen 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 AI.
Late last month, analysts at Ord Minnett put a buy rating and $24.75 price target on the company's shares. This compares to the latest Appen share price of $13.06.
