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:
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Altium Limited (ASX: ALU)
The first ASX tech share to look at is this printed circuit board (PCB) focused electronic design software provider. Although COVID-19 has been weighing on Altium's performance and could lead to it falling short of guidance in FY 2021, management remains as positive as ever on the future.
This due to its industry-leading platform and a number of tailwinds which are underpinning increasing demand for electronic design software.
These include the rapidly growing artificial intelligence and internet of things markets, which are leading to a proliferation of electronic devices globally. All in all, management is aiming to more than double its revenue to US$500 million in the next five years and appears confident it will get there.
Credit Suisse is bullish on Altium. It recently put an outperform rating and $42.00 price target on its shares.
Hipages Group Holdings Ltd (ASX: HPG)
Another ASX tech share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers. It has been growing at a strong rate in FY 2021 and looks well-placed to continue this positive form long into the future. This is thanks to the increasing popularity of its platform and its large market opportunity.
Analysts at Goldman Sachs are very positive on its prospects and currently have a buy rating and $3.40 price target on its shares. The broker notes that the company has a clear strategy to further evolve its ecosystem to increase the value it can provide to a tradie. It expects this to help the company grow its market share and total addressable market (TAM).
It explained: "In our view the road-map to build out the ecosystem provides a notable adjacency for HPG to grow its market share and TAM and provides a strong long-term growth driver. For context, HPG captures c.5% of total industry advertising spend. We see scope for this to grow at a meaningful rate as HPG's service offering addresses a greater proportion of a tradie's needs, noting that REA/CAR now capture c.40-60% of spending in their respective categories."
