Brokers rerate 3 leading ASX 200 tech stocks

Experts reveal their ratings on the ASX 200 tech sector's three biggest companies.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) tech stocks delivered another outstanding performance in FY25.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) rose by 23.9%, making it the second-best gainer of the 11 market sectors.

Including dividends, the gross total return for ASX 200 tech share investors was 24.2%.

This compares to a 9.97% increase for the benchmark ASX 200 and total gross returns of 13.8%.

On The Bull this week, two experts have rerated the ASX 200 tech sector's three biggest stocks (by market capitalisation).

Let's find out what they think.

Man ponders a receipt as he looks at his laptop.

Image source: Getty Images

Experts reveal ratings on 3 ASX 200 tech stocks

1. Wisetech Global Ltd (ASX: WTC)

Global logistics software provider, Wisetech, is the largest ASX 200 tech stock with a market cap of $38.5 billion.

The Wisetech share price is currently $116.82, up 1.42% today and up 29% over the past 12 months.

Damien Nguyen from Morgans says Wisetech has a "strong outlook". He has a buy rating on this ASX 200 tech stock.

Nguyen explains:

We believe the share price will continue to grind higher over coming years, driven by WTC's superior supply chain software and expanding global reach.  

Furthermore, the company's consistent profitability, expanding international footprint and strong product adoption make it a compelling buy for long term investors.

2. Xero Ltd (ASX: XRO)

Cloud-based accounting software provider Xero is the second-largest ASX 200 tech stock with a market cap of $29.8 billion.

The Xero share price is $179.56, down 0.8% on Monday and up 34% over the past 12 months.

Nguyen has a hold rating on this ASX 200 tech stock.

In June, Xero announced the $2.5 billion acquisition of the US-based Melio bill payments platform.

Xero announced a significant capital raise to help fund the purchase.

It completed a $1.85 billion institutional placement in June, and a $200 million shareholder purchase plan (SPP) offer closes today.

Nguyen said the Xero share price has risen strongly since April — up about 16% between then and now.

He suggests that new Xero shares investors may want to wait for a dip.

Nguyen comments:

While business fundamentals remain solid and are expected to deliver strong growth over the coming years, potential investors may want to wait for a more attractive entry point.

For existing holders, it makes sense to stay invested and monitor how the company executes its growth plans.

3. Technology One Ltd (ASX: TNE)

Enterprise software company TechnologyOne is the third-largest ASX 200 tech stock with a market cap of $13.4 billion.

TechnologyOne provides software that supports large companies with payroll, human resources, analytics, and other business functions.

Dylan Evans from Catapult Wealth describes TechnologyOne as "Australia's leading enterprise software company".

Evans has a hold rating on this ASX 200 tech stock.

He says:

Technology One has revealed consistent momentum and results for many years, and we're attracted by its reliable and recurring subscription income.

Technology One posted a strong 2025 first half result in May.

The company hit its $500 million annual recurring revenue target 18 months ahead of schedule, and TNE is now targeting $1 billion by 2030.

TechnologyOne shares are trading at $40.05, down 2.4% on Monday.

The stock is among 9 ASX 200 shares that doubled in value in FY25.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

defence personnel operating and discussing defence technology
Technology Shares

Why EOS shares are tumbling 11% today as investors weigh a key defence catalyst

EOS shares fall 11% as investors await a key contract update.

Read more »

Buy and sell written on a white cube.
Technology Shares

Why this top fundie is tipping Life360 shares for outsized gains

A leading fund manager believes Life360’s beaten-down shares could be set for a large rebound.

Read more »

Robot humanoid using artificial intelligence on a laptop.
Technology Shares

Xero shares push higher on deal with AI giant Anthropic

This tech stock is avoiding the market selloff on Friday.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Technology Shares

Why are Weebit Nano shares crashing 15% today?

Let's see why this tech stock is sinking on Friday.

Read more »

A woman scratches her head, thinking is this a no-brainer?
Technology Shares

Down 65%: Are Pro Medicus shares in the buy zone yet?

Pro Medicus has had one of its toughest periods yet...

Read more »

Red arrow going down, symbolising a falling share price.
Technology Shares

Why is this battered ASX tech stock losing big today?

Analysts remain bullish and see 110% upside for the growth share.

Read more »

A dollar sign embedded in ice, indicating a share price freeze or trading halt
Technology Shares

This ASX tech stock is frozen today. Here's what's going on

ASX tech stock enters halt as a capital raising looms.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Technology Shares

Which ASX tech stock is surging 11% on strong trading update?

Let's see what is getting investors excited on Thursday.

Read more »