Data#3 Limited (ASX: DTL) shares represent a leading opportunity, according to a fund manager. The S&P/ASX 300 Index (ASX: XKO) technology share has jumped over the last few months, but it could keep going strong.
Like many businesses, the share price suffered in the middle of 2022, with a hefty drop during June. But, despite being a technology business, the Data#3 share price is up more than 10% in 2022 to date.
It describes itself as a leading Australian IT services and solutions provider. Its offering spans cloud, the 'modern workplace', security, data, analytics and connectivity.
In a recent presentation, the business outlined that it's in a good position because, according to Gartner, Australian IT spending is growing at 6.5% per annum, with cloud computing continuing to grow at an accelerated rate.
Data#3 says it's aligned with market-leading vendors such as Microsoft, Cisco, HP and Dell. It's continuing to gain market share and the company said "there is still plenty of opportunity".
So, that's what the ASX 300 share does. Let's have a look at what a fund manager thinks about the business.
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Bullish opinion on the Data#3 share price
In the latest monthly update for the listed investment company (LIC) WAM Research Limited (ASX: WAX), the investment team revealed why they think that Data#3 can outperform expectations of the market.
Wilson Asset Management noted that in the 2022 annual general meeting (AGM) held in October, Data#3 said that it has seen a strong start to the financial year with "solid" FY23 first quarter performance thanks to an order backlog from FY22 and new contracts and projects.
Data#3 warned it's expecting the global supply constraints to keep going throughout the rest of FY23. But it is expecting that the constraints will "ease" in the coming months.
WAM highlighted that the ASX 300 share is expecting the FY23 first-half pre-tax profit will be between $21 million and $25 million. This would be an improvement on last year's $18.5 million figure.
There is an expectation that the backlog of orders will not be "materially different" to the backlog at the start of FY23.
The fund manager concluded:
As a leading provider of digital transformation products and services, Data#3 is well-positioned to outperform market expectations over the medium-term.
Foolish takeaway
The Data#3 share price has gone up around 7% over the last month. With the ASX 300 business steadily growing the dividend for investors, it could be an interesting one to consider for total shareholder returns.
