Bell Potter names 2 exciting ASX tech shares to buy now

The broker is feeling very positive about these tech stocks.

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If you're wanting to gain exposure to the tech sector, then Bell Potter has you covered.

Its analysts have just slapped buy ratings on two ASX tech shares. Here's what the broker is saying about them:

Smartpay Holdings Ltd (ASX: SMP)

This New Zealand based payments company could be an ASX tech share to buy according to the broker.

Its analysts highlight that "SMP shares have traded down despite the positive merchant data and growth in digital payments" and feel this as created a buying opportunity.

This morning, Bell Potter has reaffirmed its buy rating on the company's shares with an improved price target of $1.76. Based on its current share price of $1.39, this implies potential upside of 27% for investors over the next 12 months.

Commenting on its positive view on the ASX tech share, the broker said:

We maintain our Buy recommendation with a revised Price Target of $1.76 p/s. Our positive view is underpinned by system growth in digital payments and early expansion in the Australian market. We also see attractive unit economics within the business, where each additional unit contracted is estimated to provide for an NPV of NZ$13,299.1 and IRR of 131.2% over the implied 10-year asset duration.

TechnologyOne Ltd (ASX: TNE)

This enterprise software provider could be another ASX tech share to buy this week.

This morning, the broker has reaffirmed its buy rating and $18.50 price target on its shares. This implies potential upside of 10% for investors. In addition, a 1.2% dividend yield is expected over the next 12 months to boost the return further.

Bell Potter sees multiples growth opportunities for the company. It explains:

In our view Technology One has plenty of runway for growth in future years given its APAC market penetration in any single vertical does not exceed 15%. There are, however, some key growth opportunities in the short to medium term which are likely to help drive strong top line growth and these include: 1. Large market penetration increase in UK Education vertical; 2. Rollout of SaaS+ in Australia; and 3. Rollout of DXP LG and launch of DXP SM. There is also the potential to secure Student Management for NSW TAFE given the issues faced by the incumbent provider in fulfilling the contract.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. 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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