2 excellent ASX 200 shares to buy following the tech sell-off

Analysts see a lot of value in these tech shares following recent weakness.

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If you're looking to take advantage of recent weakness in the tech sector, then it could be worth checking out the two ASX 200 tech shares named below.

Analysts have recently named them as buys and see plenty of upside for investors over the next 12 months. Here's what they are saying:

TechnologyOne Ltd (ASX: TNE)

The first ASX 200 tech share that could be a buy is enterprise software company TechnologyOne.

Goldman Sachs is feeling very positive on the company's outlook. This is due to its defensive end-markets and sector tailwinds. It believes these are underpinning strong enough growth for the company to bring forward its aspirational annual recurring revenue (ARR) target by a whole year.

Earlier this week, the broker commented:

We believe TNE may formally bring forward its A$500mn ARR target to FY25 (from FY26), in line with our estimates (A$520mn), given the strong growth implied by the ~40% SaaS ARR guidance. Looking ahead, management may elect to provide its next aspirational ARR goal, supported by the 115% NRR target and improving UK growth prospects, for example A$1bn ARR by early-2030s (GSe) or even as soon as FY30 if we extrapolate ~15% ARR growth forward. In our view this would be ahead of market expectations for high-single / low-double digit ARR growth and serve to highlight TNE's organic growth credentials.

Goldman Sachs currently has a buy rating and a $18.30 price target on Technology One's shares.

Xero Limited (ASX: XRO)

Another ASX 200 tech share that has been named as a buy is Xero. It is a cloud-based accounting and business services platform provider to small businesses.

Citi is a fan of the company and is tipping it to surprise to the upside later this year when it releases its first-half results. The broker also highlights that it is seeing positive signs with respect to its average revenue per user (ARPU) metric. It recently said:

We see potential for ANZ subs growth to surprise on the upside in the 1H result, with Xero noting that SMBs have been resilient and Xero pointing to further growth opportunities in both markets. While early in the monetisation journey, there seems to be an increased focus on increasing the attach rate of payments which we see as positive for ARPU (and stickiness) over the longer-term.

Citi has a buy rating and a $141.90 price target on its shares.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Technology One. 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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