Analysts name 2 rapidly growing ASX tech shares to buy

These tech shares could be buys…

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One area of the market that is popular with investors is the tech sector. And with so many quality companies in the space, it isn't hard to see why.

If you're looking to increase your exposure to the sector, you may want to look at the shares listed below.

Here's why these tech shares are rated as buys:

Hipages Group Holdings Ltd (ASX: HPG)

The first tech share that is rated highly by analysts is Hipages. It connects tradies with residential and commercial consumers through its online marketplace.

The company notes that to date, over three million Australians have changed the way they find, hire, and manage trusted tradies with its platform. This has ultimately provided more work to over 31,000 trade businesses subscribed to the platform.

Goldman Sachs is a big fan of Hipages. It has a buy rating and $4.90 price target on the company's shares at present.

The broker commented: "HPG is delivering on its strategy of growing its core and entering new category channels and adjacencies to expand in the A$110bn tradie marketplace TAM. Recently we have seen the company enter the field service software market through the release of Tradiecore in June 2021."

"At the August FY21 earnings release the company announced its intention to enter the related payments and financial services adjacencies to its core tradie marketplace. We believe this solidifies the group's ability to grow subscriptions and ARPU over the medium term, and we have adjusted our forecasts accordingly," it added.

Megaport Ltd (ASX: MP1)

Another tech share that is rated highly is Megaport. It is the global leading provider of elastic interconnection services. Using software defined networking (SDN), Megaport's global platform allows customers to rapidly connect their network to other services across its network. These services can then be directly controlled by customers via mobile devices, their computer, or its open API.

While its shares have been on fire recently, one leading broker still sees a bit of upside for the Megaport share price. According to a note out of Citi, its analysts have a buy rating and $20.00 price target on the company's shares.

Citi commented: "The key positive from Megaport's 1Q update was the solid growth in MRR, with 1Q22 being a record in terms of MRR added. However, while we had expected port and services additions to be down qoq reflecting summer holidays in North America and Europe and 4Q21 potentially benefiting from a catch-up after a weak 3Q21, port additions in 1Q22 were softer than expected and missed our expectations by -30%."

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. and MEGAPORT FPO. The Motley Fool Australia has recommended Hipages Group Holdings Ltd. and MEGAPORT FPO. 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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