ASX tech shares have endured a rough 12 months, but two former market favourites are starting to show signs of life.
Both TechnologyOne Ltd (ASX: TNE) and Catapult Sports Ltd (ASX: CAT) have posted solid gains over the past month despite remaining well below their levels of a year ago.
So, are investors witnessing the start of a recovery, or is this simply a temporary bounce in a beaten-down sector?
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TechnologyOne: Quality business, battered share price
TechnologyOne shares have been swept up in the broader tech-sector sell-off over the past nine months.
While the software company's shares have climbed 8% over the past month, they remain down 23% over the last year.
The pullback of the ASX tech share is somewhat surprising given the company's operational performance.
In mid-May, TechnologyOne reported its 17th consecutive first-half profit result and reaffirmed its FY2026 guidance, demonstrating the resilience of its software-as-a-service business model.
The company provides enterprise software solutions to government, education, healthcare, and other large organisations. Its sticky customer relationships and recurring revenue base have helped underpin years of consistent growth.
Of course, no investment is without risks. A prolonged slowdown in technology spending, increased competition, or a failure to execute on growth initiatives could weigh on future earnings.
However, analysts at Canaccord Genuity remain upbeat on the ASX tech share.
They describe TechnologyOne as a high-quality software company "with a deeply embedded customer base across key verticals including government and education".
The broker added:
The company's operational momentum is strong, with FY26 tracking towards the top end of guidance and FY27 is shaping up as another ~20% profit before tax growth year. We remain confident in TNE's resilience against AI disruption, runway for growth, supported by earnings upgrades from its AI tool Plus.
Catapult Sports: A global sports-tech leader
Catapult Sports has also endured a difficult year.
The ASX tech share has gained 6% over the past month but remains down 43% over the past 12 months.
The company develops performance analytics and athlete monitoring technology used by professional sporting teams around the world. Its wearable devices and software platforms help teams track player performance, manage workloads, and reduce injury risks.
Catapult's biggest strength is its global footprint and leadership position in a niche market with significant barriers to entry. As professional sports become increasingly data-driven, demand for its products could continue growing.
The risks largely revolve around execution. Investors are expecting strong revenue growth and expanding profitability, meaning any slowdown could pressure the share price.
Despite those risks, analysts remain optimistic on the $1 billion ASX tech share. Bell Potter has a buy rating and $4.65 price target on Catapult shares. Based on the current share price of $3.16, that implies upside of approximately 47%.
Morgans is even more bullish. It has a buy rating and a $5.40 price target, suggesting potential upside of around 70%.
