Top broker thinks these ASX tech shares are buys

These tech shares could be in the buy zone…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to boost your portfolio with a couple of growth shares, then you may want to consider the tech shares listed below.

Here's why these ASX tech shares have been rated as buys by Goldman Sachs:

man on phone researching Fintech reports

Image source: Getty Images

REA Group Limited (ASX: REA)

The first ASX tech share to look at is REA Group. It is of course the market leader in online real estate listings in the Australian market.

In FY 2021, REA Group was recording an average of 121 million monthly visits to its realestate.com.au website. This was a 35% increase year on year and 3.3x more visits that its nearest competitor is receiving.

This leaves the company well-positioned to benefit from the current housing market boom, which is driving growth in listing volumes again. Combined with price increases, new revenue streams, and acquisitions, this bodes well for the company's performance in FY 2022 once lockdowns end.

Goldman Sachs is very bullish on REA Group. It has a buy rating and lifted its price target to a lofty $190.00.

Xero Limited (ASX: XRO)

Another ASX tech share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution.

In FY 2021, Xero recorded a 20% increase in subscribers to 2.74 million. This was driven by a 20% increase in ANZ subscribers to 1.56 million and a 21% increase in International subscribers to 1.18 million. In respect to the latter, this includes 720,000 subscribers in the UK market.

While this may sound like a large number, it is still only scratching at the surface of its market opportunity. Management estimates that it total addressable market is currently 45 million subscribers.

In addition to this, the company's growth should be boosted by its growing app ecosystem. Goldman Sachs believes that if Xero can monetise this ecosystem and execute its international expansion successfully, it has the potential to underpin growth for a long time to come.

The broker is very positive on the company and has a buy rating and $165.00 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

Should I buy this ASX 200 tech stock at a 52-week low?

Not every stock hitting a 52-week low is a bargain. But with strong growth and improving fundamentals, this may be…

Read more »

a man wearing spectacles has a satisfied look on his face as he appears within a graphic image of graphs, computer code and technology related symbols while he concentrates on a computer screen
Technology Shares

Are these the smartest ASX tech stocks to buy now with $2,000?

When high-quality tech stocks fall sharply, it can create opportunity.

Read more »

Green arrow going up on stock market chart, symbolising a rising share price.
Technology Shares

2 ASX tech shares that could double from here

Despite sharp recent falls, brokers continue to back these growth stocks.

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
Technology Shares

Xero shares rise again. Is this the start of a turnaround?

Xero shares rise but remain down 30% in 2026.

Read more »

A man sits with his head in his hand, looking quite dejected, as he holds a rubber tipped pen on the screen of a computer showing a graph trending downwards.
Technology Shares

Has the WiseTech stock finally hit rock bottom?

WiseTech shares slide 34% this year as selling pressure begins easing.

Read more »

A female soldier flies a drone using hand-held controls.
Technology Shares

Electro Optic Systems just had its DroneShield moment. Here's what investors should know

Stocks like EOS and DroneShield can deliver exceptional returns, but those returns come with volatility.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Technology Shares

Up over 900%: Is it too late to buy this incredible ASX tech stock?

The ASX stock has come off the boil in 2026 as investors pull back.

Read more »

An army soldier in combat uniform takes a phone call in the field.
Technology Shares

EOS shares rebound after yesterday's 16% plunge as insiders move to cash out

EOS shares have been on a remarkable run, rising roughly 7x over the past year.

Read more »