2 excellent ASX tech shares rated as buys

Looking for growth? Check out these tech shares…

| More on:
Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

Image source: Getty Images

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 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.

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's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A man sees some good news on his phone and gives a little cheer.
Growth Shares

2 excellent ASX growth shares to buy now according to brokers

Check out these excellent ASX growth shares...

Read more »

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Growth Shares

Brokers just rated these ASX 200 shares as buys in August

Pinnacle and Domain are two businesses worth investing in, according to experts.

Read more »

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Growth Shares

2 stellar ASX 200 shares that brokers rate as buys

Here are two high quality ASX 200 shares...

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Growth Shares

2 excellent ASX growth shares to buy – experts

Analysts rate these growth shares very highly...

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Growth Shares

Experts name 2 ASX growth shares to buy

Here are two growth shares that could be in the buy zone now...

Read more »

An attractive woman sits at her computer with her chin resting on her hand as she contemplates the WAM Alternative Assets listed investment company as a potential investment
Growth Shares

I rate these top ASX growth shares as buys in August

The iShares S&P 500 ETF is one idea that looks compelling for the long-term.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Growth Shares

Broker names 2 ASX 200 shares to buy in August

These ASX 200 shares could be in the buy zone...

Read more »

Surge in ASX share price represented by happy woman pointing to her big smile
Growth Shares

Here are 3 stellar ASX growth shares analysts are tipping as buys

Here are three growth shares to buy...

Read more »