Due to the quality on offer in it, the tech sector could be a great place to make long term investments.
But which shares should you look at? Two exciting ASX tech shares that have been given buy ratings are listed below. Here's why they might be shares to buy:
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Life360 Inc (ASX: 360)
Life360 is a San Francisco-based company that provides families with a market leading app that create tools that remove uncertainty from modern life.
Among its many features are real-time location sharing and notifications and driving safety features like Crash Detection and Roadside Assistance.
Life360's app is proving to be very popular with families. In fact, at the last count, the company had more than 25 million monthly active users (MAU) across 195 countries. And that's at a time with low levels of mobility because of the pandemic.
Bell Potter is a fan of Life360. Its analysts currently have a buy rating and $7.70 price target on its shares. The broker notes that the company is carving out a significant global footprint with its family app at the core. Furthermore, it is expecting the company to benefit greatly once the pandemic passes and people are on the move again.
Volpara Health Technologies Ltd (ASX: VHT)
Another ASX tech share to look at is Volpara. It is a New Zealand-based healthcare technology company best known for its VolparaEnterprise software solution.
VolparaEnterprise is a cost-effective, mission-critical tool that helps clinics deliver the highest-quality breast imaging services. This high quality software has been growing rapidly in popularity, leading to strong market share gains.
So much so, at the end of the third quarter of FY 2021, Volpara reported that its software was used in over 27% of screenings for women in the United States.
As well as the core VolparaEnterprise product, Volpara has been developing and acquiring complementary software. These add-ons are expected to drive a significant increase in average revenue per user (ARPU) in the future. In fact, management estimates that its whole suite is worth US$10 per user. This is notably more than its current ARPU of US$1.22.
Morgans is a big fan of Volpara. Earlier this month the broker put an add rating on its shares and lifted its price target to $1.94.
