The tech sector has been a great place to invest in recent years. But if you thought you were too late to the party, think again.
That's because there are a number of ASX tech shares that appear well-placed to continue delivering strong returns for investors over the next 12 months and beyond.
For example, the two shares listed below are highly rated by analysts and offer material upside from current levels. Here's what you need to know about them:
WiseTech Global Ltd (ASX: WTC)
WiseTech Global has cemented itself as a dominant force in logistics software through its flagship CargoWise platform. The company boasts high levels of recurring revenue and its customer base spans the globe, making it a key beneficiary of supply chain digitisation.
According to Bell Potter, CargoWise is the market leader in freight forwarding software, and the company's growth story is far from over. The broker recently noted:
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 currently has a buy rating on the ASX tech share with a $122.50 price target. Based on its current share price of $107.37, this implies potential upside of 14% for investors over the next 12 months.
Light & Wonder Inc (ASX: LNW)
Formerly known as Scientific Games, Light & Wonder operates at the intersection of physical and digital gaming. It delivers content and platforms across land-based, mobile, and online channels.
This week, the team at Macquarie became even more bullish on the ASX tech share after looking closer at its acquisition of Grover Gaming.
Macquarie is now forecasting 8.5% average annual adjusted EBITDA growth through to 2028, underpinned by strength in Gaming Operations, the Grover acquisition, and continued expansion in iGaming. It said:
The acquisition of Grover Gaming (report link) provides a foothold in North American ePull Tabs, an attractive industry with revenues above US$1.1bn in 2024, net of prizes,
Light & Wonder is setup to deliver +9.5% average annual adjusted EBITDA growth over three-years to hit the 2028 US$2bn target, albeit it is a touch above our forecast growth (+8.5%). A re-rating is likely, via momentum towards targets, litigation outcomes, and an eventual ASX primary listing.
Macquarie has an outperform rating and $188.00 price target on its shares. This suggests that upside of 47% is possible over the next 12 months.
