While investors will be very familiar with tech shares like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), there are some quality options in the sector flying under the radar.
Two such ASX tech shares are listed below. Here's what you need to know about them:
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Hipages Group Holdings Ltd (ASX: HPG)
The first ASX tech share to take a look at is Hipages. It is a leading Australia-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers.
Over three million Australians have used Hipages' increasingly popular platform, providing work to over 34,000 trade businesses that are subscribed to the platform. In addition to this, the company's Call of Service job management software improves tradies' productivity by streamlining their workflow and taking away the stress of admin.
At present the company is capturing approximately 5% of total industry advertising spend, but has been tipped to grow its market share materially in the future. According to a note out of Goldman Sachs, its analysts see scope for Hipages to capture upwards of 40% to 60% in the future as the company builds out its ecosystem.
In light of this, it will come as no surprise to learn that Goldman is very positive on the company. It recently reiterated its buy rating and $3.35 price target on its shares. This compares to the current Hipages share price of $2.43.
Life360 Inc (ASX: 360)
Another ASX tech share to look at is San Francisco-based app maker Life360.
The company's app offer families a wide-range of safety solutions for the modern world. This includes real-time location sharing and notifications, driving safety features like Crash Detection and Roadside Assistance, and messaging. Life360 is ultimately on a mission to create tools that remove uncertainty from modern life.
These features appear to be resonating well with families, with Life360 recently revealing 28 million monthly active users.
Pleasingly, the company continues to add to its offering. In April, it announced the acquisition of Jiobit for US$37 million. Management notes that the acquisition of the wearable location device provider is supportive of its growth strategy and opens up cross-selling opportunities.
One broker that is particularly positive on the company is Credit Suisse. It currently has an outperform rating and $8.30 price target on its shares. This compares to the latest Life360 share price of $5.45.
