Are you searching for some additions to your portfolio in July? If you have room for some ASX tech shares, then it could be worth considering the two listed below that Goldman Sachs rates highly.
Here's what the broker is saying about them:
Image source: Getty Images
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure could be an ASX tech share to buy according to Goldman Sachs.
The broker likes the leading gaming technology company due to its positive growth outlook, which is underpinned by its strong market position and new opportunities. It commented:
We believe ALL offers the most diversified growth opportunity within the gaming space, flagging ongoing strength in land-based, significant opportunities in the iGaming market and with the market maintaining an overly bearish view on the longer term outlook for mobile gaming. Our forecasts imply c. 9.8% CAGR NPAT growth for the group over FY22-25e and the stock currently trades at c. 17x P/E on an FY24 basis.
Goldman currently has an add rating and a $46.70 price target on its shares.
Objective Corporation Limited (ASX: OCL)
Goldman Sachs also thinks that Objective Corp could be an ASX tech share to buy.
It is a growing provider of content, collaboration, and process management solutions for the public sector in Asia Pacific and Europe.
Goldman believes that robust demand and its defensive earnings will support strong earnings growth in the coming years. The broker explains:
In our view OCL is well placed to deliver robust and defensive earnings growth driven by (1) R&D and new product cycles accelerating the contribution from newer products including Nexus, Build and RegWorks; (2) cycling of revenue/earnings headwinds from model transition away from perpetual / services revenue and towards subscriptions; and (3) cost management into FY24, with +350/+250bps margin expansion driving +23%/+32% FY24/25 EPS growth when comping trough FY23E earnings.
Goldman has a buy rating and a $14.90 price target on Objective Corp's shares.
