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Although the tech sector has rebounded this month, it is still down materially year to date.
This could make it worth considering an investment in the sector if you believe the rebound will continue.
But which ASX tech shares should you buy? Two that Goldman Sachs is tipping as buys are listed below. Here’s why it rates them highly:
The first ASX tech share that has been tipped as a buy by Goldman Sachs is Life360.
It is a technology company that operates in the digital consumer subscription services market. The key product in its portfolio is the Life360 app, which has 40 million active users. It offers family features such as communications, driver safety, and location sharing.
Goldman is very bullish on the company due to its massive market opportunity. Earlier this week, it commented: “We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”
The broker currently has a buy rating and $7.50 price target on the company’s shares.
Readytech Holdings Ltd (ASX: RDY)
Another ASX tech share that Goldman is bullish on is Readytech.
It is a technology company that owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.
Goldman notes that these businesses operate in market niches that are under-served by both large and small enterprise software competitors. In light of this, its growing levels of recurring revenue, and ultra low churn levels, the broker is expecting Readytech to “continue to grow mid-teens organically while making accretive acquisitions.”
Goldman Sachs currently has a buy rating and $4.60 price target on its shares.