With a new month upon us, now could be a good time to look at making some new additions to your portfolio.
If you're interested in growth shares, then you may want to look at the two tech shares listed below. Here's what you need to know about these highly rated shares:
Nitro Software Ltd (ASX: NTO)
The first ASX tech share to look at for October is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world via its Nitro Productivity Suite. This product provides integrated PDF productivity and electronic signature tools to customers. Thanks to the quality of its software and the global shift to remote and digital work, demand for Nitro's offering has been growing very strongly. So much so, the company reported a 56% increase in its annualised recurring revenue (ARR) to US$33.8 million during the first half of FY 2021.
The team at Bell Potter expect this strong form to continue. Particularly given its increased sales staff and the commencement of charging for eSigning.
The broker currently has a buy rating and $4.00 price target on its shares.
Zip Co Ltd (ASX: Z1P)
Another ASX tech share to consider for October is Zip. It is of course one of the world's leading buy now pay later (BNPL) providers with growing operations across several countries. It has also just made a big new investment in the Indian market. Zip's US$50 million investment in ZestMoney is structured in a similar way to the one that ultimately led to the highly successful acquisition of QuadPay in the United States. And given that the Indian BNPL market is tipped to be worth US$300 billion+ by FY 2026, this could prove to be another astute move by management.
In addition, the company recently announced a range of new products. These include savings accounts, rewards, and even crypto trading and transacting. Combined with the rapid growth of BNPL globally, Zip's long term growth outlook appears very positive.
One broker that is particularly positive on the company's outlook is Morgans. It has an add rating and $8.87 price target on Zip's shares.
