Here are 2 excellent ASX tech shares a top broker says are buys

With the tech sector still down materially since the start of the year, now could be an opportune time to consider an investment.

But which tech shares should you buy? Two highly rated ASX tech shares that Bell Potter has named as buys are listed below. Here's what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is Life360. It is the company behind the world's leading real time, location-sharing app which is used by over 30 million users.

Bell Potter likes the company due to its huge total addressable market and material cross selling opportunities. The broker is also expecting its strong growth to continue in FY 2022. It recently commented:

We expect the core business of Life360 to have another strong quarter in 2Q2022 even though Q2 is traditionally not a strong quarter for the company. We for instance forecast global paying circles and AMR (excl. Jiobit and Tile) increase 40% and 46% y-o-y in Q2 which is not dissimilar to the growth rates achieved in each of the last three quarters. These forecasts are supported by the strong data for April provided at the AGM, the continued strong revenue/store/download data for the app in the US and also the good momentum in the business.

And while Life360 isn't yet profitable, Bell Potter highlights that the company is "expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then."

Bell Potter has a buy rating and $7.50 price target on the company's shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX tech share that could be in the buy zone is TechnologyOne.

Bell Potter is very positive on the enterprise software provider due to its shift to a software as a service (SaaS) business model. Its analysts expect this to underpin stronger margins and stellar earnings growth in the coming years.

The broker explained:

The migration [to a fully integrated SaaS solution] is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.

Last week, Bell Potter retained its buy rating and lifted its price target on the company's shares to $14.25.