'High quality': Analyst names 2 ASX tech shares to buy right now

Growth shares have boomed since the latest interest rate hike, but investors still need to be very selective about which technology stocks they add.

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ASX shares have enjoyed a nice revival since the Reserve Bank's latest interest rate increase on Tuesday afternoon.

The 25 basis point hike was smaller than many experts expected, so growth and technology stocks have made hay the last couple of days.

But it's still a volatile world. It's important to buy growth shares with suitable attributes.

To assist, one Wilson Asset Management expert recently named a pair of tech stocks he would pounce on right now:

'A much higher quality business' than we thought

Wilson equities dealer Will Thompson was "surprised" by ELMO Software Ltd (ASX: ELO) over reporting season.

"They're proving that they're able to increase that ARR [annual recurring revenue] over the past year," he said in a Wilson video.

"Costs [are] now at a level where they don't need to… raise money anymore. It's starting to look like a much higher quality business than we previously thought."

Elmo is a buy for Thompson.

According to CMC Markets, five out of seven analysts currently agree with him that it's a buy.

Despite a strong rally since Tuesday, the Elmo share price has nevertheless halved since the start of 2022.

Ready to pick up some bargains

Thompson is a fan of the people who run billing software maker Hansen Technologies Limited (ASX: HSN).

"It's got one of the best management teams — high quality. They've been there for 30 years," he said.

"Balance sheet's really strong. They've reported good earnings."

Despite this, the Hansen share price has plunged more than 23% since 5 August.

"It's been a frustrating period," said Thompson.

"They're looking to do a bit of M and A [mergers and acquisitions] but just the vendors [are keeping] valuations still probably at the end of 2020 and 2021 levels where they were eye-wateringly high."

But this stalemate seems to be resolving.

"Hopefully they'll be able to make… a few transactions in the second half of the year and into 2023."

Elvest Co portfolio manager Adrian Ezquerro told The Motley Fool last month that Hansen's a buy for an investor willing to be patient.

"We remain pretty optimistic on Hansen's prospects," he said.

"We think in this market maybe vendor expectations might be becoming a little more realistic and the business is on a circa 7% free cash flow."

Motley Fool contributor Tony Yoo has positions in Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Elmo Software and Hansen Technologies. The Motley Fool Australia has positions in and has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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