If you’re looking to add some tech shares to your portfolio, then you may want to look at the shares listed below.
They have recently been rated as buys. Here’s why these ASX tech shares could be top options for growth-focused investors:
Adore Beauty Group Limited (ASX: ABY)
The first ASX tech share to look at is Adore Beauty. Australia’s leading online beauty retailer has been growing strongly in recent years thanks to the structural shift online which accelerated during the pandemic. Pleasingly, it looks well-placed to continue this positive form in the coming years. This is thanks to market growth and increasing online penetration rates.
Management notes that the beauty and personal care (BPC) market in Australia is worth $11.2 billion and is expected to grow at a 26% CAGR through to 2024. It also highlights that online sales comprise just 11.4% of the BPC market at present.
UBS currently has a buy rating and $6.00 price target on the company’s shares. This compares to the latest Adore Beauty share price of $4.95.
Xero Limited (ASX: XRO)
Another top ASX tech share to look at is Xero. This cloud-based accounting and business platform provider has been growing at a stellar rate in recent years. This has been driven by its very successful evolution into a full-service solution and the ongoing shift to the cloud.
Positively, despite the company now having 2.74 million subscribers, it is still only scratching at the surface of its global market opportunity. Management estimates that its total addressable market is currently 45 million subscribers.
Goldman Sachs is very positive on Xero’s future. It currently has a buy rating and $165.00 price target on its shares. This compares to the latest Xero share price of $151.01.