Analysts name 2 excellent ASX tech shares to buy

Here are two tech shares to buy…

| 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

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

Here's why these tech shares have been rated as buys:

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.

Image source: Getty Images

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is a printed circuit board (PCB) design software provider behind the Altium 365 and Altium Designer platforms. These platforms are the clear leaders in their field and used by companies such as Amazon, BAE Systems, Facebook, and Tesla.

Last month Altium released its half year results and revealed a 28% increase in revenue to US$102 million and a 38% jump in net profit to US$23 million. This stellar growth is being underpinned by strong demand for its software thanks to favourable tailwinds such as the Internet of Things (IoT) and artificial intelligence. These are supporting an explosion of electronic devices globally. 

Pleasingly, Altium's CEO, Aram Mirkazemi, is positive on the future. He said: "We are picking up pace toward market dominance and accelerating our transformative vision to digitally connect electronic design and manufacturing to the broader engineering ecosystem."

Bell Potter remains positive on Altium following its half year results. In response to the release, the broker retained its buy rating but trimmed its price target to $38.75.

Megaport Ltd (ASX: MP1)

This leading cloud connectivity and networking solutions provider could be a tech share to buy. This is due to its first mover advantage in a massive market.

Goldman Sachs estimates that Megaport has exposure to $129 billion per annum spent on fixed enterprise networking across its current geographies. This market is being underpinned by structural tailwinds such as the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).

All in all, the broker believes this leaves Megaport well-placed for growth over the next decade. As a result, it has put a buy rating and $19.50 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's parent company Motley Fool Holdings Inc. owns and has recommended Altium and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A man thinks very carefully about his money and investments.
Technology Shares

Could this beaten-down ASX 200 stock double in the next 12 months?

WiseTech shares are under pressure as sentiment and rates shift.

Read more »

A silhouette of a soldier flying a drone at sunset.
Technology Shares

Why are these 2 defence stocks tumbling today?

Two ASX defence stocks are falling despite no new announcements.

Read more »

Sad child holds paper and leans with head in hand near a computer looking downcast.
Technology Shares

Down another 5% today: Is the party finally over for the EOS share price?

Here's what analysts expect next.

Read more »

Woman in celebratory fist move looking at phone.
Technology Shares

This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks

For long-term investors, this could be a moment worth paying attention to.

Read more »

A man rests his chin in his hands, pondering what is the answer?
Technology Shares

What's going on with DroneShield shares today?

Easing tensions in the Middle East are holding back this defence stock today.

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
Technology Shares

A rare buying opportunity in 1 of the ASX's top shares?

This business has a lot of growth potential, here’s why…

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward.
Technology Shares

One ASX growth stock down over 50% to buy and hold

A 50% share price drop doesn’t always mean a broken business. Here’s why this ASX growth stock still looks compelling.

Read more »

A geeky-looking young man with glasses bites down onto a computer keyboard in frustration or despair.
Technology Shares

Up 11%: Why have these 2 ASX tech stocks surged in March?

Are these tech stocks safe havens now?

Read more »