If you're looking for options in the tech sector, then look no further.
Listed below are two ASX 200 tech shares that have been tipped as buys by brokers. Here's why they could be top options for investors:
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Altium Limited (ASX: ALU)
Altium is a multinational software company that focuses on electronics design systems for 3D printed circuit board (PCB) design and embedded system development. PCBs are the boards you find in almost all electronic devices. They are integral to their operation and come in all shapes and sizes, which is why specialist software is required for their design.
Thanks to its leadership position in the industry and favourable tailwinds such as the Internet of Things and artificial intelligence, management is aiming to grow its revenue to US$500 million by 2026 with an EBITDA margin of 38% to 40%.
As a comparison, this will be more than double Altium's FY 2022 revenue of US$220.8 million. It will also be an improvement on FY 2023's EBITDA margin guidance of 35% to 37%. This bodes well for its profit growth over the coming years.
It's no wonder then that analysts are Morgan Stanley are bullish on Altium. They currently have an overweight rating and $43.50 price target on its shares.
Life360 Inc (ASX: 360)
Life360 is the technology company behind the eponymous Life360 freemium mobile app, which boasts over 50 million monthly active users. It offers families features that range from communications to driver safety and location sharing.
The company has also made a couple of acquisitions to bolster its offering with services such as item tracking.
Its shares were caught up in the unprofitable tech-selloff over the last 12 months. This means investors can pick them up now at a fraction of what they would have paid last year. Which could be a very good thing given that management expects the company to become profitable in the very near future. If and when this happens, it could cause a rerating of its shares in line with fellow profitable tech stocks.
It is partly for this reason that Goldman Sachs is recommending its shares as a buy. It currently has a buy rating and $7.85 price target on them.
