2 ASX tech shares to buy for 2021

Nearmap Ltd (ASX:NEA) and this ASX tech share have been rated as buys. Here's what you need to know…

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One area that has been performing well this year is the tech sector. You only need to look at the chart in this article to see that.

Given the quality on offer in the sector, it's no surprise that investors are keen to have some exposure to it.

But which tech shares should you buy? Two tech shares that have been rated as buys are listed below:

asx tech shares

Image source: Getty Images

Jumbo Interactive (ASX: JIN)

Jumbo Interactive is an online lottery ticket seller and the operator of the Oz Lotteries website. While this website is easily the biggest contributor of revenue at present, this looks set to change in the future.

The company's Powered by Jumbo SaaS business is expected to be the key driver of growth over the 2020s. This business is in a strong position to benefit from the shift online of lotteries globally. Management estimates that it has a US$303 billion global total addressable market, with just 7% of this market online at the moment.

One broker that is positive on the company is Morgan Stanley. It has an overweight rating and $14.30 price target on the company's shares.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company which has operations in both the ANZ and North American markets.

It has experienced strong demand for its services in both markets over the last few years, leading to impressive growth in its key Annualised Contract Value (ACV) metric. While the pandemic has put a dampener on things, the future remains very positive. Thanks to the quality of its offering, favourable industry tailwinds, and the launch of new products, management is aiming to grow its ACV by between 20% to 40% per annum over the medium term.

Morgan Stanley is also a fan of Nearmap. It currently has an overweight rating and $3.10 price target on its shares.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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