Are you looking for exposure to the tech sector? If you are, it could be taking a look at the two ASX 200 tech shares listed below that analysts are bullish on.
These buy-rated stocks are arguably among the highest quality companies listed on the Australian share market and have delivered consistently strong returns for investors in recent years
Here's what analysts are recommending as buys this month:
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WiseTech Global Ltd (ASX: WTC)
The team at Bell Potter thinks that WiseTech Global could be an ASX 200 tech share to buy in February.
It is a leading global provider of software solutions to the logistics services industry. Its CargoWise One platform is a market leading solution that is used by many of the largest logistics providers in the world.
Bell Potter likes the company due to its strong growth outlook, which is being underpinned by its market leading position. It said:
WTC has a high degree of recurring revenue (80-85%) and should continue to grow its revenue/earnings from further customer wins. We see CargoWise as the market leader in freight forwarding software and expect growth to accelerate due to the launch of three new products, as well as ongoing global roll-out wins.
All up, WTC is a growth story with strategic acquisitions representing upside potential enabling WTC to benefit from large-scale global rollouts and consolidation within the logistics sector.
Bell Potter has a buy rating and $140.00 price target on its shares. This compares to its latest share price of $129.90.
Xero Ltd (ASX: XRO)
Over at Goldman Sachs, its analysts think that cloud accounting platform provider Xero could be a top ASX 200 tech share to buy.
Despite its stellar growth over the past decade, Goldman believes there's still a lot more left in the tank. The broker estimates that Xero has a total addressable market (TAM) of 100 million+ small businesses. This compares very favourably to its current subscriber base of 4.2 million. Goldman said:
We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.
Given the company's pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ – the stock is Buy rated.
Goldman has a buy rating and $201.00 price target on its shares. This compares to its latest share price of $182.51.
