While the Australian tech sector may pale in comparison to the US tech sector, that doesn't mean there aren't any high quality options for investors to choose from.
Two highly rated ASX 200 tech shares are listed below. Here's why they could be in the buy zone:
Life360 Inc (ASX: 360)
The first ASX 200 tech share to look at is Life360. It is the growing technology company behind the eponymous Life360 mobile app. This increasingly popular app offers families useful features such as communications, driver safety, and location sharing.
During the third quarter of FY 2022, Life360 continued its stellar growth. It revealed the addition of a further 1.5 million monthly active users (MAU) to 33.8 million, which underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million.
Speaking of which, the company has recently acquired wearables company Jiobit and items tracking company Tile. Both these companies have large addressable markets and provide Life360 with significant cross and upselling opportunities.
Bell Potter is a big fan and has a buy rating and $16.25 price target on its shares.
Megaport Ltd (ASX: MP1)
Another ASX 200 tech share to look at is Megaport. It is the global leading provider of elastic interconnection services. Using Software Defined Networking (SDN), Megaport's global platform enables customers to rapidly connect their network to other services across the Megaport Network.
They can then be directly controlled by users via mobile devices, their computer, or Megaport's open API. At the last count, Megaport was connecting more than 2,300 customers in over 760 enabled data centres globally. And with more and more infrastructure shifting to the cloud, Megaport looks well-placed to grow its customer numbers strongly over the 2020s.
The team at Macquarie is bullish on the company's prospects. So much so, the broker recently put an outperform rating and $24.00 price target on its shares. Macquarie believes the company is well-placed to grow ahead of consensus expectations.
