Investors that are on the lookout for ASX tech shares to buy might want to check out the two in this article.
That's because analysts at Goldman Sachs have recently tipped them as buys. Let's see why the broker is bullish on them:
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Hansen Technologies Limited (ASX: HSN)
The first ASX tech share that Goldman Sachs thinks investors should be buying is Hansen Technologies.
It is a global provider of software and services to the energy, water, and communications industries. Its award-winning software portfolio helps its customers create, sell, and deliver new products and services, manage and analyse customer data, and control critical revenue management and customer support processes.
Goldman likes Hansen due to its high margins and defensive earnings. It explains:
We are attracted to HSN's mission-critical systems, high margins and stable end markets which provide defensive earnings that are protected from the macro cycle. In our view HSN has executed well over a number of years on improving its organic growth, which has largely gone unrewarded by the market. With structural tailwinds in the Energy industry in particular, we believe the +5-7% organic growth rate is sustainable. Progress on Powercloud cost synergies also sets up the company to deliver significant earnings growth in FY26E (>20%), with evidence of execution a key catalyst to re-rate the shares. HSN trades at a discount to historical averages, and key peers, which we see as unjustified given its defensive characteristics, robust growth and organic growth tailwinds.
The broker has a buy rating and $5.10 price target on its shares.
NextDC Ltd (ASX: NXT)
Another ASX tech share that gets the thumbs up from Goldman Sachs' analysts is NextDC.
It is a technology company and Data Centre-as-a-Service provider that is building the infrastructure platform for the digital economy.
The broker believes that NextDC is well-placed to benefit from the rapid growth in cloud adoption. It explains:
We are particularly positive on NXT and are Buy rated given the rapid growth in cloud adoption, which has been supported by the continued evolution of the enterprise telecommunications market, and the significant demand by both public and private investors for digital infrastructure assets. We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.
Goldman Sachs currently has a buy rating and $18.50 price target on NextDC's shares.
