Though the tech sector has rebounded not too long ago, it’s nonetheless down materially for the reason that begin of the yr. For instance, the S&P ASX All Know-how index stays down 30% in 2022.

Whereas that is disappointing, it has dragged a lot of ASX tech shares right down to very engaging ranges.

Two such shares are listed under. Right here’s why consultants fee them extremely at current:

The primary ASX tech share to have a look at is Life360. It’s the firm behind the world’s main actual time, location-sharing app which is utilized by over 30 million customers.

As well as, the corporate has bolstered its providing with acquisitions of firms concerned with wearables and gadgets monitoring. This supplies Life360 with cross-selling alternatives to its large person base.

And whereas Life360 isn’t but worthwhile, it does have a hefty money stability which is predicted to be greater than ample to assist it by way of to breakeven.

Bell Potter is bullish on Life360. It has a purchase ranking and $7.50 value goal on the corporate’s shares. The dealer commented:

Life360 develops and delivers a cell app for households – referred to as Life360 – that gives communications, driving security and placement sharing. The corporate adopts a freemium mannequin to draw clients however has been efficiently changing a portion of those clients to paying subscribers over the past a number of years by offering beneficial options. The corporate has additionally not too long ago made two acquisitions – Jiobit and Tile – in order that now it not solely connects and protects individuals but additionally pets and issues. Sure Life360 is at present not worthwhile however is predicted to be working money movement optimistic from 4Q2023 and has greater than ample money to fund its operations until then.

One other ASX tech share that may very well be a high possibility for traders is Xero.

It’s a cloud accounting platform supplier which has been rising its subscriber base at a powerful fee for a few years. However regardless of now having ~3.Three million subscribers globally, that is solely a fraction of its estimated market alternative of 45 million subscribers.

The group at Goldman Sachs could be very optimistic on Xero and believes it’s well-placed to ship sturdy gross revenue development within the coming years. Even on this powerful working atmosphere. Consequently, it has a purchase ranking and $113.00 value goal on its shares. The dealer commented:

Whereas noting that the close to time period stays sturdy, we do acknowledge the danger of upper churn from SME enterprise challenges and up to date value will increase. Nonetheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & significance of its software program, and decrease ranges of churn vs. AU total. We revise FY23-25 GP [to 22%] to replicate FX and better churn/ARPU development (value will increase).