2 highly rated ASX shares analysts are tipping as buys

These ASX shares could be in the buy zone…

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Looking for investment ideas for March? Listed below are two high quality options to consider right now.

Here's what you need to know about these ASX shares:

REA Group Limited (ASX: REA)

The first ASX share to consider is property listings company REA Group. It is best-known for the realestate.com.au website, which has been dominating the ANZ market for years.

This domination continued in FY 2021, with the company recording an average of 121.9 million monthly visits to its website. This was up 35% year on year and was 3.3 times greater than its nearest competitor. Pleasingly, this strong form has continued in FY 2022, with REA once again reporting 3.3 times more visits than its nearest rival. This includes a record 13.2 million people visiting its local site in October.

In light of this dominance, the strength of the housing market, and new acquisitions and revenue streams, REA Group has been tipped to continue its growth in the coming years by the team at Goldman Sachs. Its analysts recently put a buy rating and $167.00 price target on the company's shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX share to look at is TechnologyOne. It is Australia's largest enterprise software company, providing a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers. At the last count, there were well over 1,000+ leading corporations, government agencies, local councils and universities being powered by its software.

This has underpinned strong recurring revenue growth, which is expected to continue in the coming years. For example, management is targeting annual recurring revenue (ARR) of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.

Pleasingly, management appears confident it will achieve this target. It commented: "Our SaaS business continues to grow quickly. The quality of this revenue stream is exceptionally high, given its recurring contractual nature, combined with our very low churn rate of ~1%."

"With our fast-growing SaaS business and the announcement of the end of our On-Premise business, we are on track to hit our target of $500m+ ARR by FY26."

Bell Potter is a fan and has a buy rating and $15.00 price target on its shares.

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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