The team at Goldman Sachs has been busy reviewing all the results that were released during earnings season.
Three ASX tech stocks that the broker was pleased with are listed below. Here's what the broker is saying about their results or outlooks:
Life360 Inc (ASX: 360)
This location technology company was a standout for Goldman Sachs during earnings season. It commented:
360's re-rate is only beginning, in our view, as it delivers solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation.
FY24E EBITDA guidance appears conservative relative to the operating leverage demonstrated in FY23A and provides visibility to >50% growth in both FY24/25E.
Goldman has a buy rating and $14.20 price target on the ASX tech stock.
Macquarie Technology Group Ltd (ASX: MAQ)
Goldman was impressed with this data centre, telco, and cloud services company's performance and believes is well-positioned for growth. It also highlights its attractive valuation compared to peers. It said:
MAQ is poised to demonstrate the acceleration of its data centre growth pipeline through 2024, both from IC3W (now DA approved and underway, with potential to be upsized from 38MW to 45MW) and a new site in the Sydney metro area.
The core Cloud Services / Telco businesses are performing well in the interim, and valuation remains compelling relative to listed peers.
The broker has a buy rating and $93.00 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
A final ASX tech stock that has been given the thumbs up is enterprise software provider Readytech. While the broker wasn't blown away by its update, it is feeling very positive on its outlook. It said:
RDY slightly pushed out its revenue targets, though we highlight that the 1H24 miss was driven by lumpy implementation revenue as subscription continued to grow at a mid-high teens rate.
The margin inflection point has arrived and we see material upside to both Visible Alpha Consensus Data estimates and valuation upon execution towards mid-term targets.
Goldman has a buy rating and $4.25 price target on its shares.
