Looking for options in the tech sector? Then look at the ASX shares listed below that have been named as buys.
Here’s what you need to know about these tech shares:
Altium Limited (ASX: ALU)
The first ASX tech share to look at is Altium. It is an electronic design software provider. Altium is best-known for its Altium Designer and Altium 365 platforms.
The company’s platforms are regarded as the best in the industry and are used by many of the world’s largest companies. This includes the likes of BAE Systems, Microsoft, and Tesla.
The good news for Altium is that demand for these platforms looks set to increase materially over the next decade. This is due partly to the internet of things and artificial intelligence markets, which are underpinning an explosion of electronic devices globally.
The team at Citi are positive on the company. They have a buy rating and $35.40 price target on its shares.
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.
Adoption of these tools has accelerated during the pandemic and helped underpin strong growth during the first half of FY 2021. For example, for the six months ended 30 June, the company’s reported a 56% increase in its annualised recurring revenue (ARR) to US$33.8 million. This puts it on track to achieve its full year guidance for ARR of between US$39 million and US$42 million.
Positively, this is still well short of its total addressable market which is estimated to be $28 billion. This gives it a very long runway for growth over the next decade.
Bell Potter is very positive on the company. In fact, Nitro is the broker’s top tech share to buy this month. Its analysts have a buy rating and $4.00 price target on the company’s shares.