Unfortunately for investors, the tech sector has been a sea of red this month.
While this is disappointing, it may have created a buying opportunity for investors that are willing to make long term investments.
But which ASX 200 tech stock should you buy right now? Let's see which one Goldman Sachs is tipping as a buy and which it is tipping as a hold:
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WiseTech Global Ltd (ASX: WTC)
Let's start with the ASX 200 tech stock that the broker thinks is a hold right now, WiseTech Global.
WiseTech is a global provider of logistics software for the freight forwarding industry across 165+ countries.
Although Goldman is very positive on the company's future, it isn't a fan of its valuation. As a result, it appears to think investors should keep their powder dry until there's a better entry point. It said:
While we are positive on the company's strong competitive position, productivity benefits from CargoWise software, near-term industry tailwinds from increased M&A and emerging customs/landside solutions, we note WTC is looking to invest significantly over the coming years, and remains at a significant premium to our Technology peer set. Hence, with balanced risk/rewards we are Neutral rated. Key catalysts include new customer wins, industry consolidation, global trade volume data and pricing increases. Key upside/downside risks for WTC: (1) Medium term investment to drive new product capabilities; (2) New contract wins; (3) Industry profitability; (4) Competition; (5) Industry M&A; (6) Higher or lower investment returns; (7) System outages; and (8) Dilutive or accretive M&A.
Goldman has a neutral rating and $91.00 price target on the company's shares.
Pro Medicus Limited (ASX: PME)
The ASX 200 tech stock that Goldman is tipping as a buy today is Pro Medicus.
It is a cloud-native picture archiving and communication systems (PACS) software provider in the radiology industry.
Goldman believes Pro Medicus is well-placed for strong long term growth thanks to its clear leadership position, artificial intelligence opportunity, and expansion into other areas. It explains:
In our view, PME is well positioned into FY25 given a full year benefit of some large and high profile contracts, in addition to the accelerating frequency and size of new contract wins. We see PME's software Visage 7 as an industry leading solution with two distinct advantages relative to peers — speed and cloud capabilities — that have influenced the choice of PACS vendor. Given this, PME is benefiting from an industry network effect, and we forecast share gains to 13% in FY30E (c.7% today) as more hospitals move to modern systems. PME is expanding into adjacent solutions including AI and Cardiology which could provide significant upside given we believe PME is the incumbent technology leader in radiology, and is well-placed to take share in both markets.
Goldman has a buy rating and $148.00 price target on its shares.
