Investors looking for top ASX tech shares to buy in March may want to consider the three companies below.
These shares have been backed by analysts due to their strong market positions, growth prospects, and positive outlooks for the years ahead. Here's what you need to know:
Life360 Inc (ASX: 360)
Analysts at Bell Potter are feeling bullish about Life360, the location technology company behind the hugely popular Life360 app. With over 70 million monthly active users (MAU) across more than 150 countries, the company has carved out a dominant position in the market.
The broker is expecting a stellar FY 2024 result, followed by strong guidance for the year ahead. It recently stated:
Life360 remains a key pick of ours for the following reasons: 1. We expect a strong 2024 result with some chance of a beat to the EBITDA guidance; 2. We anticipate strong 2025 guidance with revenue growth exceeding 20% and positive statutory EBITDA; and 3. We foresee the company being added to the S&P/ASX 100 Index in early March's rebalance.
Bell Potter has a buy rating and $27.75 price target on Life360's shares.
Pro Medicus Limited (ASX: PME)
Another ASX tech share that Bell Potter believes is worth considering is Pro Medicus. The health imaging technology company has been delivering impressive results, and its Visage solution continues to outperform competitors.
The broker sees more strong growth ahead for Pro Medicus as it expands its reach in the industry. It commented:
"[T]he recent win at Duly Health is pivotal. Private radiology is the lowest margin work in the sector and for this reason there has been considerable consolidation. For PME to win an RFP [request for proposal] in this space would have been unheard of up until now and in our view this is another affirmation of the value proposition.
The PME full stack solution continues to wipe the floor with competitors – 10 contract announcements in the LTM including two new academic medical centres clients. FY25/26 revenues upgraded by 4% and 2% respectively. In addition we expect further growth in the cardiology space with the first small scale implementation to take place in April 2025."
Bell Potter currently has a buy rating and $330.00 price target on its shares.
Xero Limited (ASX: XRO)
Cloud accounting giant Xero is another ASX tech share that could be a buy in March. The company serves over 4.2 million subscribers worldwide, and its total addressable market (TAM) is estimated to exceed 100 million small to medium-sized businesses. Clearly it has a very long runway for growth over the next decade.
Goldman Sachs is optimistic about Xero's outlook for the year ahead, particularly as the company continues to enhance its platform and expand its reach. The broker stated:
We are positive on the CY25 outlook as given that accelerating product cadence is supporting subscriber and ARPU growth in ANZ and abroad. However, we expect a step-up in US investment this year, presenting risk to consensus margins – but are increasingly positive on this opportunity.
Goldman Sachs has a buy rating and $201.00 price target on Xero's shares.
