'High quality': Analyst names 2 ASX tech shares to buy right now

Growth shares have boomed since the latest interest rate hike, but investors still need to be very selective about which technology stocks they add.

| More on:

Should you invest $1,000 in Apm Human Services International right now?

Before you buy Apm Human Services International shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Apm Human Services International wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.

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

ASX shares have enjoyed a nice revival since the Reserve Bank's latest interest rate increase on Tuesday afternoon.

The 25 basis point hike was smaller than many experts expected, so growth and technology stocks have made hay the last couple of days.

But it's still a volatile world. It's important to buy growth shares with suitable attributes.

To assist, one Wilson Asset Management expert recently named a pair of tech stocks he would pounce on right now:

'A much higher quality business' than we thought

Wilson equities dealer Will Thompson was "surprised" by ELMO Software Ltd (ASX: ELO) over reporting season.

"They're proving that they're able to increase that ARR [annual recurring revenue] over the past year," he said in a Wilson video.

"Costs [are] now at a level where they don't need to… raise money anymore. It's starting to look like a much higher quality business than we previously thought."

Elmo is a buy for Thompson.

According to CMC Markets, five out of seven analysts currently agree with him that it's a buy.

Despite a strong rally since Tuesday, the Elmo share price has nevertheless halved since the start of 2022.

Ready to pick up some bargains

Thompson is a fan of the people who run billing software maker Hansen Technologies Limited (ASX: HSN).

"It's got one of the best management teams — high quality. They've been there for 30 years," he said.

"Balance sheet's really strong. They've reported good earnings."

Despite this, the Hansen share price has plunged more than 23% since 5 August.

"It's been a frustrating period," said Thompson.

"They're looking to do a bit of M and A [mergers and acquisitions] but just the vendors [are keeping] valuations still probably at the end of 2020 and 2021 levels where they were eye-wateringly high."

But this stalemate seems to be resolving.

"Hopefully they'll be able to make… a few transactions in the second half of the year and into 2023."

Elvest Co portfolio manager Adrian Ezquerro told The Motley Fool last month that Hansen's a buy for an investor willing to be patient.

"We remain pretty optimistic on Hansen's prospects," he said.

"We think in this market maybe vendor expectations might be becoming a little more realistic and the business is on a circa 7% free cash flow."

Motley Fool contributor Tony Yoo has positions in Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Elmo Software and Hansen Technologies. The Motley Fool Australia has positions in and has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A young man goes over his finances and investment portfolio at home.
Technology Shares

Why are WiseTech shares sinking 6% today?

What's going on? Let's find out what is happening with this tech stock today.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

NextDC share price lifts off on record quarterly contract wins

AI-fuelled data centre demand is lifting investor interest in the ASX 200 tech stock today.

Read more »

group of traders cheering at stock market
Technology Shares

What drove a 10% surge in ASX 200 tech shares last week?

The ASX 200 roared to a 2-month high on Friday, with tech shares leading the 11 market sectors last week.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Technology Shares

Why is the Block share price crashing 33%?

This payment giant's shares are being hammered today. But why?

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Technology Shares

These ASX 200 tech stocks could rise 20% to 35%

Goldman Sachs is tipping these shares to rise strongly from current levels.

Read more »

A corporate team or board stands together and looks out the window.
Technology Shares

WiseTech shares charge higher on $3.5b acquisition news

This tech stock is ending the week positively. But why?

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

3 reasons to buy this $25 billion ASX 200 tech stock today

A top expert forecasts more outperformance from this fast-growing ASX 200 tech stock.

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Technology Shares

Why is the Brainchip share price crashing 9% today?

The semiconductor company is being sold off on Tuesday. But why?

Read more »