The tech sector has been under a lot of pressure this year.
While this is disappointing, it could have created a buying opportunity for patient investors.
One example is the mid-cap ASX tech share in this article, which Bell Potter is recommending to clients.
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Which mid-cap ASX tech share?
The tech share that Bell Potter is bullish on is Energy One Ltd (ASX: EOL).
It is a global provider of software products, outsourced operations, and advisory services for wholesale energy, environmental, and carbon trading markets.
Bell Potter notes that its solutions support energy participants across Europe, the UK, and the Asia-Pacific region, offering end-to-end capabilities for managing their entire wholesale energy portfolios.
The broker highlights that the ASX tech share has released its first trading update under its new CEO.
While the update was not especially positive, with annual recurring revenue (ARR) growth below expectations, Bell Potter notes that this is due to the timing of project commencements. It said:
EOL has provided its first market and business update under new CEO Ben Tranier, who took over in March 2026. The company flagged FY26 ARR growth will be approximately 13%, below its previous projections of 15-20%. This is due to timing of project commencements, primarily two large multinational industrial customers combining for an ARR value of ~$1m, which will fall into FY27.
EOL also confirmed the acceleration of a share-based payment expense of $0.8m for FY26. Further oneoff M&A related costs are also expected in FY26 as EOL pursues potential acquisition opportunities within their core markets (AUS & EUR). On an underlying basis, EOL expect their metrics to be in-line with consensus (VA Underlying EBITDA $21.3m; Underlying NPAT $9.6m).
Time to buy
According to the note, Bell Potter has retained its buy rating on the mid-cap ASX tech share with a trimmed price target of $17.10 (from $18.00).
Based on its current share price of $12.85, this implies potential upside of 33% for investors over the next 12 months.
Bell Potter is very positive on the software company and believes that artificial intelligence (AI) disruption concerns are unwarranted. It said:
We believe AI displacement concerns are unwarranted with EOL as they serve a deeply regulated and sticky industry with mission-critical solutions. Tailwinds remain regarding growing complexity in energy markets, surging European trading volumes and increasing distributed energy resources. These trends reinforce the strength of EOL's positioning as a one-stop-shop provider of software and services, rather than a collection of individual tools. We remain attracted to the company's strong growth profile, expanding margins and impressive SaaS metrics.
