Goldman Sachs loves these ASX tech shares

Here are two tech shares rated highly…

| More on:
A boy wearing a virtual reality headset opens his arms in wonder

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

If you're a fan of tech shares, then you may want to look closely at the two listed below.

Both shares are rated highly by the team at Goldman Sachs. Here's what the broker thinks about them:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX tech share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with over 30,000 trusted tradies.

Goldman Sachs is very bullish on Hipages' growth prospects. As a result, it currently has a buy rating and $4.95 price target on its shares.

The broker commented: "In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries. There is a meaningful growth runway for HPG from here: it currently captures only 2.4% of industry GMV; of the GMV it does service, the take rate is low compared to other vertical marketplaces. We forecast 22% revenue CAGR from FY21-FY24E and despite near term reinvestment generating a flat margin profile over our forecast period, we expect solid operating leverage over the long term with our terminal year (FY31E) EBITDA margin reaching 46%."

PointsBet Holdings Ltd (ASX: PBH)

Another ASX tech share to look at is PointsBet. It is a sports betting and iGaming provider with operations in the ANZ and US markets. At the end of FY 2021, the company had grown its active clients to 196,585 in Australia and 159,321 in the US.

Goldman Sachs is also very positive on PointsBet's outlook. This is due largely to its massive opportunity in the US market. The broker has a buy rating and $14.75 price target on its shares.

It commented: "Overall we remain positive on PBH, with our thesis underpinned by i) PBH's leverage to the burgeoning US Sports Betting and iGaming market, which we forecast to be a >US$50 bn TAM opportunity at maturity, ii) our view that PBH remains well-placed to capitalise given its in-house tech stack, iii) upside risk to long-run sustainable margins in Aus and the US, and iv) scalability benefits ahead from NBCUniversal leads and broader coverage from state roll outs."

Motley Fool contributor 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 and has recommended Hipages Group Holdings Ltd. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Hipages Group Holdings Ltd. and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Four people on the beach leap high into the air.
Broker Notes

4 ASX All Ords shares offering 10% to 30% annual growth: brokers

These ASX All Ords stocks have caught the eye of brokers this week.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Here are 2 ASX shares that Morgans rates as buys

Let's see why the broker is feeling bullish on these stocks.

Read more »

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

Guess which ASX 200 stock was just upgraded to a buy rating

Why did the broker just turn bullish? Let's find out.

Read more »

Two brokers analysing stocks.
Broker Notes

Don't miss these changes to broker ratings on ASX shares

The verdicts are in.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

man thinking about whether to invest in bitcoin
Broker Notes

Why now is the time to buy this beaten down $8b ASX 200 stock

Goldman Sachs thinks that now is the time to invest in this beaten down drinks giant.

Read more »

a man sits alone in his house with a dejected look on his face as he looks at a glass of red wine he is holding in his hand with an open bottle on the table in front of him.
Broker Notes

Red alert! 4 ASX All Ords shares just got broker downgrades

These ASX All Ords stocks have caught the attention of brokers for all the wrong reasons.

Read more »