If you are looking to gain exposure to the beaten down tech sector, then it could be worth considering the two stocks in this article.
That's because they have been named as buys and are tipped to rise strongly from current levels. Here's what is being recommended:
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Pro Medicus Ltd (ASX: PME)
The first ASX 200 tech stock that could be a buy is Pro Medicus.
It is a healthcare technology company with a specialised focus. Its Visage imaging platform is used by hospitals to process and analyse medical images quickly and efficiently.
The company has built a strong position in the United States, where it continues to win long-term contracts with major healthcare providers. These agreements provide visibility over future revenue and support high margins.
Demand for more efficient medical imaging is growing, particularly as data volumes increase in healthcare systems and radiologist shortages persist.
With a proven product and expanding customer base, Pro Medicus continues to show how specialised software can scale globally.
Morgans recently put a buy rating and $210.00 price target on its shares. Based on its current share price of $134.84, this implies potential upside of more than 55% over the next 12 months.
Putting that in context, a $10,000 investment in Pro Medicus shares would become approximately $15,500 if Morgans' recommendation proves accurate.
Xero Ltd (ASX: XRO)
Another ASX 200 tech stock that could rise strongly is Xero.
It provides cloud-based accounting software to small and medium-sized businesses. Its platform sits at the centre of financial operations, making it a key tool for managing accounts, payroll, and payments.
The company's growth opportunity remains significant. There are still many businesses globally that have yet to adopt cloud accounting solutions, and Xero continues to expand its presence in markets such as the United States.
It is also building out additional services, including payments and financial insights, which can increase revenue per user over time.
With a large market opportunity and multiple ways to grow, Xero remains well placed to expand over the long term.
UBS is bullish on this ASX 200 tech stock. The broker recently put a buy rating and $127.00 price target on Xero's shares. Based on its current share price of $79.30, this implies potential upside of 60% for investors between now and this time next year.
To put that into context, a $10,000 investment would turn into approximately $16,000 if UBS is on the money with its recommendation.
