The Australian tech sector has had a relatively tough time in 2025, with only a handful of tech stocks outperforming the market.
But Bell Potter doesn't think this should put you off from investing in the sector in 2026. In fact, it has just picked out three of the best ASX tech stocks to buy and is predicting strong returns from them. Here's what it is recommending:
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Life360 Inc (ASX: 360)
Life360 has been on form in 2025, rising by over 50%. However, things were significantly better at the beginning of October, with the location technology company's shares pulling back by 37% since then.
Bell Potter thinks this is an opportunity in 2026 and has put a buy rating and $52.50 price target on its shares. It said:
Life360 has had a large pullback in its share price like many other stocks in the technology sector (peak of ~$55 in early October down to ~$35 in mid November). Outside of the general correction in the sector there was one factor specific to the company which also drove down the share price – slowing monthly active user or MAU growth in 3Q2025. Q3 is traditionally the strongest quarter for MAU growth so the relatively slow growth was a big surprise and was also not well explained by the company.
Outside of this number, however, everything was as expected or better and importantly paying subscriber growth was still strong. Our view is the outlook remains very positive for the company and the one quarter of relatively soft MAU growth was an aberration. We therefore expect a return to reasonable or even strong MAU growth in 4Q2025, and this could also serve as a potential catalyst for the share price.
WiseTech Global Ltd (ASX: WTC)
Another ASX tech stock that has pulled back materially this year is logistics solutions technology company WiseTech.
Bell Potter remains positive and believes that new products, a new commercial model, and the acquisition of e2open will help drive growth. It has put a buy rating and $100.00 price target on its shares. It commented:
WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White. These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open).
These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27. All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.
CAR Group Limited (ASX: CAR)
A third ASX tech stock that could be a best buy in 2026 according to the broker is auto listings company CAR Group.
With its shares trading on a lower than normal price to earnings (P/E) ratio, the broker sees now as an opportune time to invest. It has a buy rating and $42.20 price target on its shares. It said:
Similarly to both 360 and WTC, CAR has seen a drawdown in recent months, though lacks a company specific driver which in our view provides an entry opportunity. CAR is diversified throughout verticals (automotive and non-automotive) and geographies (Australia, North America, South Korea, Brazil, and Chile), with revenues supported by a dealer subscription model which can provide for a level of safety against volatility in listings volumes.
CAR is trading around two-year lows at a P/E of ~28x, despite a defined product rollout map to drive value from its market-leading networks in its large, addressable markets, which includes C2C payments, pay-per lead model, regional expansion and scope to develop market-based legacy advertising practices, underpinning a steady growth profile in our forecast EPS through FY26e-FY28e.
