Buy and hold these ASX 200 tech stocks for 10 years

Goldman Sachs is bullish on these rapidly growing companies.

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As we covered here recently, the team at Betashares believes that the major winners for Australian investors over the next decade could come from the tech sector. It said:

With the nascent adoption of AI, cloud computing, big data, automation, and the internet of things, there's a good chance that the next decade's major winners will come from the tech sector.

In light of this, investors may want to consider adding some ASX 200 tech stocks to their portfolios. Especially if they don't already have meaningful exposure to this side of the market.

But which tech stocks could be buys? Let's take a look at two that are highly rated by analysts at Goldman Sachs right now.

Megaport Ltd (ASX: MP1)

The broker thinks that this network as a service provider's shares could deliver strong returns for investors over the next 12 months. Goldman currently has a buy rating and $12.00 price target on its shares.

And with the broker expecting Megaport's strong growth to continue for a number of years, there's potential for its shares to continue beating the market for some time.

Its analysts believe the ASX 200 tech stock stands to benefit greatly from structural tailwinds. They explain:

We believe MP1 will benefit from strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies. While acknowledging mixed near-term execution around the partner channel and the new MVE product, we are Buy rated on the name as we remain confident MP1 has a clear product advantage vs. peers and a decade-long runway for robust growth. Despite the soft operational trends in recent periods, we expect still robust top-line growth, with the increased focus on profitable growth supporting an attractive earnings profile over FY24-26.

Pro Medicus Limited (ASX: PME)

This health imaging technology company could be another great ASX 200 tech stock to buy and hold for the long term.

Although its shares have rallied significantly over the past 12 months, Goldman Sachs sees scope for them to keep rising. The broker recently put a buy rating and $193.00 price target on its shares.

Goldman believes that Pro Medicus is extremely well-positioned to continue growing at a strong rate for some time to come. It said:

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 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.

Motley Fool contributor James Mickleboro has positions in Megaport and Pro Medicus. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Megaport, and Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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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