If you’re looking for growth shares to buy, then the tech sector could be a great place to start. At this side of the market there are a number of companies with the potential to grow materially in the future.
With that in mind, I have picked out two top tech shares to consider. Here’s what you need to know about them:
Life360 Inc (ASX: 360)
The first ASX tech share to look at is this family-focused mobile app maker.
It has been a very strong performer this year and continues to report meteoric growth in active users. For example, last week Life360 released its second quarter update and revealed that its global monthly active user (MAU) base increased by 4.2 million over the three months to reach 32.3 million users.
This underpinned a 28% increase in quarterly underlying revenue to US$25 million and a 36% jump in annualised monthly revenue (AMR) to US$105.9 million.
In response to the release, the team at Credit Suisse retained their outperform rating and lifted their price target on company’s shares to $10.00. It appears confident the company can exceed its guidance in FY 2021.
Nitro Software Ltd (ASX: NTO)
The second tech share to look at is Nitro. It is a global document productivity company that helps businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation.
Demand for its offering has been growing strongly, which is leading to stellar recurring revenue growth. For example, last week Nitro also released its second quarter update. That update revealed that its annualised recurring revenue (ARR) reached US$33.8 million at the end of June. This was an increase of 56% over the prior corresponding period.
It expects this trend to continue in the second half and is forecasting full year ARR in the region of US$39 million and US$42 million. Positively, this is still only a fraction of its overall market opportunity.
Morgan Stanley is very positive on the company. Last week its analysts put an overweight rating and $3.70 price target on the company’s shares.