If you are looking to bolster your portfolio with some ASX tech shares, you may want to look at the two listed below that have been tipped as buys by Goldman Sachs.
Here's what the broker is saying about these ASX tech shares:
Image source Getty Images
Readytech Holdings Ltd (ASX: RDY)
The first ASX tech share that Goldman Sachs rates as a buy is this leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.
As well as its positive long term growth outlook, the broker likes the company due to its defensive earnings. It explained:
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 a buy rating and $4.45 price target on its shares.
Life360 Inc (ASX: 360)
Another ASX tech share that Goldman Sachs is a fan of is Life360.
It is a growing location technology company that has almost 50 million global active users of its eponymous Life360 mobile app.
Goldman has been impressed with Life360's performance and believes the company is about to reach an inflection point. It commented:
In our view Life360 is approaching an inflection point as it proves the pricing power of its subscription business model and moves out of the non-profitable tech basket. The full-year impact of price increases drives the majority of CY23 subscription revenue growth, with possible upside to paying subscribers should Tile bundling materially lift payer conversion (expected launch late-1Q23).
Another positive is its huge growth runway. Goldman estimates that the company has a "US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US."
It is for this reason that the broker has a buy rating and $7.90 price target on Life360's shares.
