ASX 200 tech shares: Experts rate 2 to sell and 1 to buy

We review some expert analysis of 3 popular stocks within the ASX 200 tech sector.

ASX 200 tech shares are outperforming the market on Friday.

The S&P/ASX 200 Index (ASX: XJO) is currently down 0.22% after setting a new high of 9,025.5 points early this morning.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently up 0.37%.

In this article, we review some expert analysis of three popular stocks within the ASX 200 tech sector.

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.

Image source: Getty Images

Buy this ASX 200 tech share favourite, says broker

Life360 Ltd (ASX: 360)

Bell Potter has a buy rating on this ASX 200 tech share darling after the company reported 2Q FY25 revenue of US$115.4 million.

That was 6% ahead of Bell Potter's forecast of US$109.1 million.

Life360 also surprised with an adjusted EBITDA of US$20.3 million, which was 59% above Bell Potter's forecast of US$12.8 million.

So, it's hardly surprising that Bell Potter has maintained its buy rating and increased its 12-month share price target by 27%!

The new price target for Life360 shares is $47.50.

Life360 shares are trading at $44.52 on Friday, up 2.1%.

This means Bell Potter's price prediction implies about 7% share price growth over the next year.

Analysts say it's time to lock in profits…

Experts say it's time to sell these ASX 200 tech shares after strong price growth.

Wisetech Global Ltd (ASX: WTC)

On The Bull this week, Tony Locantro from Alto Capital revealed a sell rating on the biggest ASX 200 tech share on the market.

Locantro notes that Wisetech recently completed the $US2.1 billion acquisition of US-based company, e2open.

Wisetech funded the acquisition with a new debt syndicated facility.

The analyst has watched Wisetech shares rise strongly from $74.83 on 4 April to $112.98 at the time of writing.

It may be time to lock in those gains, he says.

Locantro comments:

WiseTech was recently trading on a lofty price/earnings ratio of 124 times.

Share price strength creates an opportunity to lock in some profits.

Megaport Ltd (ASX: MP1)

Megaport provides network-as-a-service solutions to help businesses connect with cloud service providers.

Arthur Garipoli from Seneca Financial Solutions has a sell rating on Megaport shares.

Megaport shares have risen from $8.66 on 7 April to trade above $15 this month.

Garipoli reckons it may be time to take some profits off the table.

He comments:

The company has guided to increasing revenue in fiscal year 2026 due to new products and greater market penetration via an increasing sales team.

However, in our view, it appears such a positive outlook has been priced into the stock.

Any delays or issues to fiscal year 2027 sales plans is likely to be punished by the market.

We suggest investors consider taking profits while the share price exhibits strength.

The ASX 200 tech share is $14.01 at the time of writing, down 2.2%.

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 Life360, Megaport, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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