The Australian share market may not have a tech sector comparable to what you will find on Wall Street, but that doesn't mean there aren't any quality options for investors.
For example, Bell Potter has just picked out three of its favourite ASX tech shares to buy.
It also feels that now could be a good time to invest in the sector given that "the consistent increases in interest rates both domestically and internationally over the last 18 months now appear to be nearing or at an end."
The broker highlights that "this is positive as it suggests decreases in interest rates are not too far away and this is good for high growth stocks with low or negative cash flows/earnings now and only reasonable or meaningful cash flows/earnings in several years' time."
Which ASX tech shares could be buys?
Bell Potter has named Life360 Inc (ASX: 360) as one of the ASX tech shares to buy right now.
With approximately 60 million users, the broker sees "a very long runway to go in terms of converting users to paying customers." It also highlights that "even after a recent hefty price rise the company is adding around a few hundred thousand paying subscribers a quarter."
Bell Potter has a buy rating and a $11 price target on its shares.
Another ASX tech share that gets the seal of approval from the broker is WiseTech Global Ltd (ASX: WTC). It has a price target of $72.25 on its shares.
It notes that WiseTech "is the largest and probably best listed tech stock domestically. It is also truly global and doesn't face a major competitor like, for instance, Xero does with Intuit."
Another positive is that the company "has a huge opportunity before it as it tries to expand from its core market of freight forwarding into customs and compliance, and also landside logistics."
It adds that the "stock has not performed well the last few months due to the investment it is making in entering these new markets but in our view that provides a buying opportunity."
A small cap to buy
Finally, a lesser known ASX tech share that Bell Potter likes is Task Group Holdings Ltd (ASX: TSK). It is a founder-led enterprise management platform that delivers an end-to-end SaaS solution in the quick service restaurant (QSR), gaming, stadium, and food service verticals.
The broker highlights that the small cap has "a high-quality client list, which includes the provision of McDonald's GMA-lite app into 60+ markets globally via its Plexure division."
It also notes that the company is "targeting a significant opportunity it sees in the North American Stadiums and Gaming verticals where it aims to utilise its native end-to-end platform to supplant incumbent and 'clunky' competitors."
Bell Potter has a buy rating and 54 cents price target.
