2 rapidly growing ASX tech shares to buy

Xero Limited (ASX:XRO) and this ASX tech share could be the ones to buy for 2021 and beyond. Here's what you need to know…

| More on:
asx shares involved with cloud tech represented by illuminated cloud on circuit board

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a large number of growth shares for investors to choose from on the Australian share market.

Two in the tech sector that come highly rated are listed below. Here's why they have recently been named as shares to buy:

Pushpay Holdings Ltd (ASX: PPH)

The first tech share to look at is Pushpay. It is a fast-growing donor management and community engagement provider to the church market.

Thanks to the quality of its platform, its leadership position in the market, and the shift to a cashless society, Pushpay has been growing at a very strong rate.

For example, the company recently released its half year results and revealed a 48% increase in total processing volume to US$3.2 billion. This led to Pushpay reporting a 53% increase in operating revenue to US$85.6 million and, thanks to the further widening of its margins, EBITDAF growth of 177% to US$26.7 million.

This strong form and its long runway for growth has caught the eye of analysts at Goldman Sachs. They have put a conviction buy rating and $2.59 price target on the company's shares. Based on the current Pushpay share price of $1.68, this price target implies potential upside of over 54%.

Xero Limited (ASX: XRO)

Another tech share to look at is Xero. It is a leading New Zealand-based cloud-based business and accounting software provider.

Thanks to its successful evolution from an accounting platform into a full service small business solution over the last few years, the company has been growing its customer numbers and revenues at a rapid rate.

For example, at the last count Xero had 2.45 million subscribers and was generating half year operating revenue of NZ$409.8 million from them.

The good news is that due to the quality of its offering, the shift to the cloud, its global market opportunity, and burgeoning app ecosystem, Xero has been tipped for more of the same in the future.

Goldman Sachs is very positive on its prospects and recently put a buy rating and $157.00 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 PUSHPAY FPO NZX and Xero. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Growth Shares

High-conviction ASX 200 shares with 10-year upside

Let's see why analysts think these shares could be great long term picks.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Growth Shares

The ultimate Australian stocks to buy and hold for 10+ years

These shares could be ultimate buys according to analysts.

Read more »

A smiling man take a big bite out of a burrito
Growth Shares

Looking for ASX growth shares? I rate these 2 as buys

I’m backing these investments to deliver big returns.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Growth Shares

Macquarie says these ASX 200 growth shares can rise 20% to 35%

Let's see what the broker is saying about these growing companies.

Read more »

Growth Shares

Why Zip shares and this ASX 200 stock are a buy according to this fund manager

These stocks could be leading contenders to deliver returns in the ASX 200.

Read more »

A man working in the stock exchange.
Growth Shares

Buy these 2 impressive ASX 300 shares in July: experts

Experts are bullish on these stocks.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face.
Growth Shares

1 of the best ASX growth stocks to consider buying in July

I’m calling this stock one of the leading growth opportunities.

Read more »

a group of tech people gather around a computer operated by a young woman while the group looks on in support.
Growth Shares

3 of the best Australian stocks to buy and hold forever

These high-quality shares are rated as buys by brokers for a reason.

Read more »