If you’re a fan of tech shares, then you may want to look at the ones listed below.
They have been growing strongly and have been tipped to continue doing so long into the future. Here’s what you need to know:
Appen Ltd (ASX: APX)
The first tech share to look at is this artificial intelligence (AI) data services company.
Its shares have come under significant pressure over the last 12 months due to concerns over the softening of demand for its services during the pandemic from some of its biggest customers.
The good news is that management appears to believe that this weakness is only temporary and that the issues it is facing aren’t structural. It is also expecting demand to rebound strongly once trading conditions return to normal.
In addition to this, management recently announced plans to evolve into a provider of a broad range of AI data annotation products and solutions. It believes this will unlock growth in new markets.
Ord Minnett remains positive on the company. It currently has a buy rating and $24.75 price target on its shares. This is almost double where its shares trade today.
Hipages Group Holdings Ltd (ASX: HPG)
Another ASX tech share to consider is this leading online platform and software as a service (SaaS) provider.
Hipages connects tradies with residential and commercial consumers, providing them with job leads. The platform also allows tradies to communicate with customers and run general admin duties.
Goldman Sachs is very positive on the company’s growth prospects. So much so, this morning the broker retained its buy rating and lifted its price target by 20% to $4.10.
The broker said: “We are confident in HPG’s ability to execute on its tradie customer acquisition strategy. Current fundamentals of this business look very strong and should support long-term structural growth in the marketplace. We see c.20% p.a. revenue growth over our forecast period and 48% 3-yr EPS CAGR. On our estimates, HPG is trading at attractive valuation multiples vs peers and is in a strong net cash position.”