2 growing ASX tech shares this broker rates very highly

Are these future tech stars?

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If you’re interested in investing in some up and coming tech shares, then you might want to check out the two listed below.

Here’s why Goldman Sachs rates them highly:

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is a leading Australian-based online platform and software as a service (SaaS) provider. Its platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals.

Last week, analysts at Goldman Sachs retained their buy rating and lifted their price target to $3.40. This compares to the latest Hipages share price of $2.48. The broker has been impressed with its form in recent months, which is supporting its bullish sentiment.

Goldman commented: “HPG is building a compelling marketplace, with a healthy balance between consumers and tradies. App download data and website visits shows HPG is executing on its tradie marketing strategy. App downloads in CY21 YTD are up +24% YoY.”

“Momentum is being maintained on the consumer side of the marketplace with monthly website visits up +21% YoY. The combined effect of tradie and consumer growth is an increase in the number of jobs posted per tradie rising over the forecast period from c.36 in FY20 to c.53 by FY23E.

“Growth in this metric is a key indicator of marketplace balance and demonstrates the value tradies are deriving from the platform. This is a key driver of our forecast 11% CAGR in ARPU,” it added.

PointsBet Holdings Ltd (ASX: PBH)

PointsBet is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services via its scalable cloud-based platform.

It currently operates in the ANZ and United States markets and is generating significant growth in both. Pleasingly, thanks to its huge opportunity in the United States, it has been tipped to deliver very strong growth over the next decade.

Goldman Sachs is a big fan of PointsBet and currently has a buy rating and $17.20 price target on its shares. This compares to the most recent PointsBet share price of $13.50.

The broker commented: “We like PBH due to i) PBH’s leverage to the burgeoning US Sports Betting and iGaming market which we forecast to be a US$53 bn TAM opportunity at maturity, ii) our view that PBH is well-placed to achieve 10% share in states it operates in, iii) upside risk to long-run sustainable margins in Aus and the US which was reaffirmed by the strong margin result in 3Q21, iv) Scalability benefits ahead noting positive impacts from the NBCUniversal deal to come and imminent launch of iGaming (which we believe will provide both cost and revenue synergies), and v) strong management team and execution track record.”

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hipages Group Holdings Ltd. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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