Investors looking for ASX tech shares to buy might want to look at the two listed below.
That's because they have recently been given the thumbs up from experts. Here's what you need to know:
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Altium Limited (ASX: ALU)
The first ASX tech share that has been named as a buy is Altium.
It is a growing software company with a focus on the printed circuit board (PCB) design market with its Altium Designer and Altium 365 platforms.
These platforms are head and shoulders above the competition and count many major companies and organisations as users. This includes Microsoft, NASA, and Tesla.
Thanks to Altium's dominant position in the market, management is aiming to more than double its revenue to US$500 million by 2026. And with Altium expecting its margins to expand at the same time, this bodes well for its earnings.
Morgan Stanley is a fan of the company. It currently has an overweight rating and $43.50 price target on its shares.
Xero Limited (ASX: XRO)
Another ASX tech share that could be a buy is Xero.
It provides a platform for online accounting and business services to small businesses across the globe.
The team at Citi was impressed with the company's recent full-year results and are forecasting more of the same in the coming years. The broker commented:
We see Xero's focus (under the new CEO) on efficient growth as a step in the right direction. We upgrade our EBITDA forecasts by +7% to +8%, increase target price by +14% to $120, maintain our Buy rating, and see upside risk to consensus forecasts if Xero is able to deliver on 'Rule of 40'. We see FY24e as a year of re-basing and reassessing strategy. We also see delivery of 20%+ revenue growth while meeting the 'Rule of 40' threshold (something Xero has not done to date) as key for a further re-rate.
Citi has a buy rating and $120.00 price target on Xero's shares.
