While the Australian tech sector may not be anywhere near as large as its US equivalent, that doesn’t mean there aren’t any quality options for investors to choose from.
Three ASX tech shares that are highly rated are listed below. Here’s what you need to know about them:
Altium Limited (ASX: ALU)
The first tech share to look at is Altium. It is an electronic design software provider best-known for its Altium Designer and Altium 365 platforms. These platforms dominate the electronic design market, which continues to expand due to the growing Internet of Things and artificial intelligence industries. Management is confident in its growth prospects. So much so, it is aiming to more than double its revenue to US$500 million within five years.
Analysts at Credit Suisse are positive on the company. Earlier this month they retained their outperform rating on its shares and lifted their price target on them to $42.00. The Altium share price is currently fetching $36.36.
Life360 Inc (ASX: 360)
Another ASX tech share to look at is San Francisco-based app maker Life360. Its eponymous app offers families a wide range of safety solutions for the modern world. This includes real-time location sharing and notifications, driving safety features like Crash Detection and Roadside Assistance, and messaging. At the last count, the company had a massive 28 million monthly active users.
This morning Morgan Stanley initiated coverage on the company with an overweight rating and $8.60 price target. This compares to the current Life360 share price of $6.25.
Whispir Limited (ASX: WSP)
Whispir is a software as a service (SaaS) communications workflow platform provider. Its popular platform is used by 750 businesses globally to automate interactions between them and their people and customers. Among its users are the Australian Government, Changi Airport, Monash University, Nespresso, and Takata. Management estimates that it has a total addressable market of US$4.7 billion in just United States. This compares to its current annualised recurring revenue (ARR) of $50.3 million.
Ord Minnett has a buy rating and $4.25 price target on Whispir’s shares. This is notably higher than the latest Whispir share price of $2.49.