Are you wanting to add some ASX tech shares to your portfolio before the sector rebounds fully?
If you are, then you may want to look at the two listed below that have been tipped as buys with 30%+ upside by brokers.
Here's what they are saying about these ASX tech shares:
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NextDC Ltd (ASX: NXT)
The first ASX tech share that brokers rate as a buy is NextDC.
It is involved in the development and operation of independent data centres in Australia. NextDC has a focus on providing scalable, on-demand services to support outsourced data centre infrastructure and cloud connectivity for enterprises of all sizes.
Morgans is positive on the data centre operator and believes it is well-placed for growth thanks to the structural shift to the cloud and its new developments. It commented:
NXT should deliver another good set of results in FY23 with some upside risk to guidance, in our view. Structural demand for cloud and colocation remains incredibly strong. NXT's new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.
Morgans has an add rating and $13.30 price target on NextDC's shares. This compares to the latest NextDC share price of $10.11.
Readytech Holdings Ltd (ASX: RDY)
Another ASX tech share that has been named as a buy is this leading provider of mission-critical software-as-a-service (SaaS) solutions.
ReadyTech provides these solutions to defensive end-markets such as education, employment services, workforce management, government, and justice sectors. This bodes well in the current environment where some businesses are cutting back on spending.
It is for this reason and its attractive valuation that Goldman Sachs is very positive on the company. It commented:
RDY remains a tech value play within our coverage universe, trading at a >50% discount to peers when accounting for its robust growth outlook. Government software has been a pocket of strength and resilience within TMT (~3/4 of RDY's earnings) and we are positive on RDY's ability to deliver mid-teens organic growth at an expanding profit margin through the cycle.
Goldman has put a buy rating and $4.45 price target on its shares. This compares to the current ReadyTech share price of $3.59.
