We often talk about the Australian sharemarket being dominated by financials (like the big banks) and resources/materials (energy and mining giants). Simultaneously, investors might be familiar with the rhetoric that tech and healthcare are underrepresented in the Australian stock market.
While that is true, it doesn't mean there is no opportunity for technology shares. In fact, there are many growth shares in these sectors.
While these companies come with more risk than established blue-chip companies, a healthy diversified portfolio can also include small and mid-cap companies.
Let's look at two in the technology sector that broker Bell Potter has identified as having upside.
Data3 Ltd (ASX: DTL)
Data#3 Ltd (ASX: DTL) is an information technology services and solutions provider. Its technology solutions are broadly categorised into cloud, workplace, security, data and analytics, and connectivity.
The company also provides consulting, procurement, project services, managed services, and resourcing solutions.
It has been one of the best performing ASX technology shares this year, rising 20.70% since the start of 2025.
Broker Bell Potter currently has an "overweight" rating and $8.30 price target on these technology shares.
This indicates there is still further room for growth based on its current price of $7.64.
If its share price were to reach the target set by Bell Potter, it would be a 8.64% rise.
The broker pointed towards strong revenue growth so far this year as a key factor in the company's performance.
Data#3 reported a record gross sales of $1.4 billion for the first half of FY '25, up 7.4% compared to the same period last year. Gross profit increased by 10% to $143.6 million, with an average gross margin of 10.2%.
Data#3 expects ongoing growth in its services business, driven by demand for AI solutions and an uptick in multi-cloud and end-user device investments.
The broker also expects continued growth in the Australian tech industry as a whole.
Gartner forecasts the Australian technology industry will grow by 8.7% in 2025, with software spending expected to rise by 13.4%. Data#3 expects its services growth to exceed the industry rate.
Hansen Technologies Ltd (ASX: HSN)
This tech company delivers customer care and billing software to the energy, utilities, and telecommunications industries globally.
Hansen's products assist its clients with customer engagement, managing and analysing customer data, and billing and revenue management.
Although the share price has experienced volatility, this tech share is up 10.36% over the past year.
At the time of writing, these technology shares are trading at $4.90 each.
Broker Bell Potter appears to see value in the company's share price, with a current "overweight" recommendation and target price of $6.28.
This indicates an upside of 28.16%.
Positive earnings from earlier this year has also driven confidence from the broker in these technology shares.
The broker highlighted tailwinds in the energy sector and a pressing need for communication service providers to upgrade legacy systems as positives for future growth.
