The Australian market is home to some exceptional tech companies such as XERO FPO NZX (ASX: XRO) and Altium Limited (ASX: ALU). Thanks to their strong performances both companies have deservedly gained a lot of attention in the last 12 months.
Because of this most investors are well aware of these two companies and their shares appear to be fully valued as a result. But further down the market there are a number of growing tech shares which don't gain as much coverage.
Three which I believe are flying under the radar and could be priced well for a buy and hold investment today are as follows:
Hansen Technologies Limited (ASX: HSN)
This billing and customer care software provider thoroughly impressed me with its full year results at the end of August. Those results saw Hansen post a massive 54.4% increase in net profit after tax to $26.1 million. Whilst earnings growth is expected to slow a touch in FY 2017, management is still expecting revenue to increase by up to 17.5%. Although at 30x full year earnings its shares are starting to look a little expensive, I believe Hansen represents a fantastic buy and hold investment. Its sticky products and the long-standing relationships it builds with clients gives me the confidence to believe that the company can continue growing for at least the next decade.
Nextdc Ltd (ASX: NXT)
Due to continued strong demand for its services this data-centre-as-a-service provider last week announced its plans to raise $150 million in order to build a second data centre in Sydney. Investors responded positively to the news, with its shares surging by over 5.5% when they came out of their trading halt. This brought its year-to-date return to a massive 66%, but it might not stop there. A research note out of UBS today reveals that the investment bank has reiterated its buy rating on NEXTDC's shares and increased its price target to $4.75. This is approximately 19% higher than the current share price. Thanks to the seismic shift to cloud computing, I believe NEXTDC is perfectly positioned for sustained growth. This makes it a buy in my eyes.
Touchcorp Ltd (ASX: TCH)
This provider of secure transaction processing, payments and data services is definitely one to watch in my opinion. It recently reported a 21% rise in half year revenue to $22.5 million, thanks largely to a strong performance from its domestic business. But as well as having a growing domestic business, Touchcorp has been busy expanding overseas in recent months. One such deal with Cornèr Bank in Switzerland is expected to provide the company with long-term transactional revenue streams. A further bonus with an investment in Touchcorp is that investors also gain exposure to the rapidly growing Afterpay Holdings Ltd (ASX: AFY). Afterpay's share price has risen 124% since listing on the ASX in May. With Touchcorp having a 30% stake in Afterpay, this is great news for its shareholders.
