If you want some exposure to the tech sector before it rebounds fully, then it could be worth checking out the ASX 200 tech stocks listed below.
They are rated as buys by analysts Goldman Sachs and could be well-placed to deliver strong returns over the next 12 months and beyond. Here's what you need to know about them:
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Life360 Inc. (ASX: 360)
Life360 is the San Francisco-based technology company behind the eponymous family safety and location-sharing app.
It is quickly becoming a household name in the digital lifestyle space. With almost 80 million monthly active users across the globe, Life360 is tapping into a huge market for family tracking, personal safety, and location-based services.
While the company has been investing heavily in growth, it is now turning its attention to scalability, profitability, and product innovation. This includes focusing on monetising its non-premium users through its new advertisement business.
Goldman Sachs is very positive on the company's outlook. It expects Life360's EBITDA to grow from US$45.5 million in FY 2024, to US$74.4 million in FY 2025, and then US$111 million in FY 2026.
The broker has a buy rating and $27.00 price target on the ASX 200 tech stock. This implies potential upside of 20% for investors over the next 12 months.
WiseTech Global Ltd (ASX: WTC)
Another ASX 200 tech stock that gets the thumbs up from Goldman Sachs is WiseTech Global.
It is the logistics solutions platform provider behind CargoWise. This hugely popular platform powers the global logistics and freight forwarding industry, serving clients across the world.
As global trade gets more complex and supply chains modernise, demand for WiseTech's software has only grown — and it has been riding that wave brilliantly. With high margins, sticky customers, and a smart acquisition strategy, WiseTech has built a true moat around its business.
WiseTech has also just revealed that it is in discussions about a major acquisition, which could be another driver of growth in the coming years.
It is looking to acquire supply chain platform provider e2open (NYSE: ETWO) for an estimated $3.5 billion. Goldman Sachs notes that "should this transaction proceed, it would be consistent with WTC's stated strategy of accelerating product development/ecosystem reach through smaller tuck-in acquisitions, alongside larger strategically significant acquisitions."
In light of this, the broker has retained its buy rating and $128.00 price target on the ASX 200 tech stock. Based on its current share price, this implies potential upside of 35% for investors over the next 12 months.
