2 exciting ASX tech shares to buy

These tech shares could be in the buy zone…

If you're searching for growth shares to buy, then the tech sector could be a great place to look.

At this side of the market there are a number of companies with the potential to grow significantly over the next decade.

With that in mind, I have picked out two top tech options that are rated highly. Here's what you need to know about them:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX tech share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider. Its platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals.

Last month it released its full year results and impressed the market with a 22% jump in revenue to $55.8 million. This was ahead of its guidance for FY 2021. In addition, the company revealed that its monthly recurring revenue (MRR) rose 27% year on year to $5.2 million.

In response to this, the team at Goldman Sachs reiterated their buy rating and lifted their price target to $4.35.

Goldman highlights that Hipages currently captures <1% of a total $97 billion tradie business spend. This represents a significant opportunity for growth over the next decade.

Nitro Software Ltd (ASX: NTO)

Another ASX tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite.

The Nitro Productivity Suite provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Demand for Nitro's offering has been increasing from businesses of all sizes. This has led to the company's recurring revenue growing strongly again in FY 2021.

For example, during the first half of the financial year, the company achieved a 56% increase in its annualised recurring revenue (ARR) to US$33.8 million. This puts it on track to achieve its FY 2021 guidance for ARR of between US$39 million and US$42 million.

Wilsons is very positive on the company. It recently retained its overweight rating and lifted its price target to $4.22.

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 Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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