2 'pleasing' ASX 200 tech shares to get your hands on right now

Growth stocks have led the way in 2023. Wilson analysts name a pair they'd still be willing to buy.

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While US and Japanese stocks have shot ahead in 2023, the S&P/ASX 200 Index (ASX: XJO) has been left behind.

Many experts attribute this to the relatively small presence of the technology sector in the Australian market.

The ASX 200 is dominated by big banks and mining companies. So when overseas markets rally on the back of a revival in growth and tech shares, as it has done this year, the local bourse struggles.

That, of course, doesn't mean there aren't tech gems in the ASX 200.

Here are two such stocks that the team at Wilson Asset Management rates as a buy:

50% price increase without scaring off customers

Life360 Inc (ASX: 360), funnily enough, is a Californian software company that's listed in Australia.

The stock, if you can believe it, has climbed more than 150% over the past 12 months.

This is all due to a push from management to turn the company from a growth-at-all-costs cash-burner to one that's more profitable.

Senior equity analyst Shaun Weick noted that the fruits of this were starting to show up in the numbers.

Created with Highcharts 11.4.3Life360 PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

"The first quarter 2023 result demonstrated cash flow break-even being achieved a quarter ahead of guidance," he said in a Wilson video.

"Net [subscriber] adds were particularly pleasing given the company's put through over 50% price increases."

Despite the recent increase in valuation, he is still recommending Life360 as a buy.

That's because its acquisition last year of Bluetooth tracker device Tile has not yet fully integrated into its software suite.

"The key catalyst here will be the third quarter 2023 result, where you'll start to see the benefits of the bundling Tile strategy flow through, which has the potential to drive a significant uplift in retention of existing adds and conversion of new users," said Weick.

"[This] could see earnings really accelerate from here."

This boom tech stock is still below pre-pandemic highs

Seek Ltd (ASX: SEK) shares haven't quite been as explosive as Life360, only rising 1.95% over the past year.

However, Wilson analyst Anna Milne would now pick them up in a heartbeat.

Created with Highcharts 11.4.3Seek PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

She admitted that the online jobs classifieds platform has "had a really good few years" and that listing volumes are now coming back down to earth.

"They're not falling off a cliff," said Milne in another Wilson video.

"Combine that with yield improvements, cost management initiatives, a valuation that doesn't look too challenging — in fact, it's actually lower than it was pre-COVID, despite a different profitability for the next few years."

Milne's team would buy the stock right now.

"It's our preference amongst the online classifieds."

Unusually for a tech stock, Seek also pays out a handy 2.1% dividend yield.

Motley Fool contributor Tony Yoo has positions in Life360 and Seek. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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