The ASX tech share Data#3 Ltd (ASX: DTL) could be an underrated opportunity, according to some experts.
The fund manager Wilson Asset Management describes Data#3 as an information and communications technology company. It offers a number of services including cloud, 'modern workplace', security, data and analytics, and connectivity.
WAM noted that the Data#3 share price rose 33% in October following the company's positive updates where it twice upgraded its FY27 first-half earnings expectations during the month.
Let's take a look at why the investment team in charge of the listed investment company (LIC) WAM Capital Ltd (ASX: WAM) are so positive on the ASX tech share.
Strong profit growth expectations
Wilson Asset Management noted that Data#3 now expects profit before tax to increase between 55% and 70% year-over-year to between $52 million and $57 million in the FY27 first-half result.
That growth forecast includes gross profit growth of around 20% at the mid-point and forecast interest income of around $8.8 million.
The upgrade in expectations is due to continued momentum across its infrastructure and software businesses. Data#3 is seeing strong demand across networking, data centre infrastructure and software solutions, while it's also benefiting from higher-than-expected interest income and a number of large transactions during the half year.
The ASX tech share also disclosed at its annual general meeting (AGM), held on 28 October 2026, that it expects to deliver growth in the second half of FY27, though at a more normalised rate than the expected growth in the FY27 first-half.
The business noted that in software, it has a strategic focus on winning with complementary vendor partners, services and packaged offerings. It continued:
Microsoft's AI products and programs provide further opportunity in FY27, and we continue to drive large Azure commitments, software advisory and Microsoft services opportunities in the public sector. The strategy also provides focus on growth in the mid-market, supported by continued investment in our MyD3 customer portal that enables efficiency and scale.
With the way that Australia and the wider world are going increasingly digital, this could be a good investment to own for exposure to that tailwind.
Image source: Getty Images
Why the fund manager is still bullish
The investment team in charge of WAM Capital said:
We remain confident in Data#3's medium-term outlook as businesses invest in upgrading their technology infrastructure to support the adoption of artificial intelligence (AI), increasing demand for hardware, software and services.
It looks like it could be one ASX share to watch, along with others.
