There are a couple of ASX technology stocks that have been punished by investors in recent times.
But have those tech shares suffered enough? Are their current low prices actually undervaluing the underlying businesses?
A pair of experts took a look at Pushpay Holdings Ltd (ASX: PPH) and the much-maligned Nuix Ltd (ASX: NXL) to answer this dilemma.
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Pushpay has picked all the low-hanging fruit
Kiwi company Pushpay provides software for US churches to manage donations from their congregations.
After tripling its share price in less than 4 months coming out of the COVID-19 crash last year, it has just gone sideways. The stock is down 2.7% over the past 12 months.
According to Burman Invest chief investment officer Julia Lee, the slowdown came because many of the big churches had already been signed up. It then took more effort and leg work to add smaller clients to sustain growth.
"During COVID-19 and lockdowns, it looked like their competitors were growing at a much faster rate," she told Switzer TV Investing.
"But it does look like growth is back on the agenda. They're looking to capture 25% of the US Catholic Church."
Lee added Pushpay also recently made a complementary acquisition in a video streaming provider, which would allow clients to broadcast religious services.
However, she wouldn't wholeheartedly buy in until more of its sales growth in the post-COVID world is revealed.
"I'd be happy to put a little bit of money in this one, but keeping a close eye on it."
Nuix AGM might be very entertaining
Even though Nuix Ltd (ASX: NXL) only listed 11 months ago, shareholders will have felt like they've lived through a decade of stress.
A series of financial downgrades and governance scandals took the stock price for the analytics software provider from a high of $11.86 to as low as $2.16.
Oddly, these tech shares have had a mini-revival in the past month, spiking up 16.4% to close at $2.91 on Tuesday.
Shaw and Partners senior investment adviser Adam Dawes would hold fire though.
"We're all scratching our heads on no news why it rallied," he said.
"I'd be really cautious on this one… There's a lot more water to go under the bridge on this one."
Dawes would like to see what comes out of the annual general meeting on 30 November.
"The shareholders are going to get those rotten tomatoes and get ready to throw them because there's going to be some hard questions to be answered."
He would personally not consider picking up Nuix shares until some "more confidence" returned to the company.
"Even if it gets to $3 to $5 and I miss out on that initial rally, I'm comfortable then to get in because I know that some of these problems have been worked through."
