2 of the best ASX tech shares to buy this week

Afterpay Ltd (ASX:APT) and this ASX tech share could be great options for investors wanting exposure to the tech sector…

| More on:

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

One area which has been tipped as a place to invest for the long term is the tech sector.

This is because this sector is filled with companies that have the potential to grow significantly in the future.

Two ASX tech shares to look at are listed below. Here's why they might be long term buys:

Afterpay Ltd (ASX: APT)

The first ASX tech share to consider is Afterpay. It is a payments company that has been growing at a rapid rate over the last few years. This has been driven by the growing popularity of the buy now pay later payment method with consumers and retailers and its successful international expansion.

Pleasingly, this strong growth has accelerated in FY 2021 thanks to the shift to online shopping because of the pandemic. This appears to have positioned the company perfectly for another blockbuster result this year.

Looking ahead, Afterpay will soon release banking products such as transaction accounts. There is also speculation that it won't stop there and could even expand into other products such as mortgages in the future. This has the potential to be a real threat to the banks and be another key driver of future growth.

Analysts at Bell Potter are confident on its future. According to a recent note, the broker has retained its buy rating and lifted its price target on Afterpay's shares to $168.50.

Audinate Group Limited (ASX: AD8)

At the small end of the tech sector you will find Audinate. It is a digital audio-visual (AV) networking technologies provider which was delivering impressive sales growth over the last few years prior to the pandemic.

This was thanks to its Dante product, which replaces all audio connections with a computer network. It then effortlessly sends hundreds of channels of audio over slender ethernet cables with perfect digital fidelity.

Dante is the clear market leader. In fact, Dante has eight times as many enabled devices as its nearest rival. The company is now aiming to do the same with the visual side of the market and has a growing team of experts in the UK.

One broker that is positive on Audinate is Morgan Stanley. It is happy with its recovery since the height of the pandemic and notes that Audinate had a record-breaking second quarter. This was particularly pleasing given how many of its customers are still facing COVID headwinds. The broker has an overweight rating and $9.00 price target on the company's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 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 »

$100 Australian notes on top of each other.
Growth Shares

Where to invest $10,000 into ASX shares in July

Analysts are raving about these shares. But why are they buys?

Read more »

Four piles of coins, each getting higher, with trees on them.
Growth Shares

2 ASX growth shares to buy this month: experts

These stocks are expected to have a strong next few years…

Read more »