Goldman Sachs has just put buy ratings on these ASX tech shares

These could be the tech shares to buy according to the broker.

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If you're interested in investing in the tech sector, then it could be worth listening to what Goldman Sachs is saying.

It has named a couple of ASX tech shares as buys this week and is tipping major upside for investors. Here's what it is saying:

Life360 Inc (ASX: 360)

Goldman has responded to this location technology company's quarterly update by retaining its buy rating and $10.50 price target. This implies almost a 25% upside for investors over the next 12 months.

The broker believes that Life360 is still a cheap ASX tech share despite recent gains. It explains:

Even after today's share price performance, Life360 screens cheaply compared to domestic technology and global peers.

It was also pleased to see that Life360's strong growth is not coming at the expense of margins. It adds:

Life360's 3Q23 result came in ahead of expectations on arguably its most important metric, subscriber net adds, which returned close to peak levels (+118k) after recent price increases. […] Growth has not come at the expense of margins, with Life360 demonstrating its inherent operating leverage by delivering another EBITDA upgrade in FY23E.

Webjet Limited (ASX: WEB)

Another ASX tech share that has been given the thumbs up by Goldman Sachs this week is online travel booker, Webjet.

This week, its analysts have reaffirmed their buy rating and $8.30 price target ahead of the company's half-year results release next week. This implies a 29% upside for investors.

Goldman continues to believe the company is well-positioned for long-term growth and that its shares are undervalued. It said:

Our Buy thesis on WEB is premised on 1) WEB demonstrating strong cash generation as the market recovers while current valuation continues to be impacted by macro concerns 2) We believe WEB's Bedbanks business offers a structural growth opportunity and expect it to drive scale benefits, underpinned by system changes and ERP upgrades as WEB goes through the recovery cycle. 3) We believe the OTA business is exposed to the right channels with the ongoing shift towards digital bookings likely to aid WEB in growing its TAM as well as market share. We see the recent pull back in share price as an attractive entry point.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. The Motley Fool Australia has no position in any of the stocks mentioned. 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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