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2 worthwhile ASX tech shares analysts say are buys with 20%+ upside

Looking down on a workstation with three people working on their tech devices.

Picture supply: Getty Photos

Sadly for progress buyers, the tech sector has been hammered during the last 12 months. This has been pushed partly by the market’s sudden aversion to loss-making corporations as charges rise.

The excellent news is that not all tech shares are making a loss. The 2 listed under are extremely worthwhile and rising at a powerful price. Right here’s why analysts suppose buyers ought to snap them up at this time:

Goal Company Restricted (ASX: OCL)

The primary tech share to have a look at is software program firm Goal Corp. It offers content material, collaboration, and course of administration options for the general public sector within the Asia Pacific, USA and Europe.

Goal Corp lately launched its full 12 months outcomes and reported a 15% improve in annualised recurring income (ARR) to $85.5 million and a 31% raise in web revenue after tax to $21 million.

Goldman Sachs was impressed and stays bullish on the long run. Significantly given the corporate’s defensive finish markets and robust monitor document of progress and margin growth. It additionally sees upside being pushed from new merchandise and its US growth.

Within the meantime, Goldman is forecasting ARR progress of 18% in each FY 2023 and FY 2024.

In gentle of this optimistic outlook, the dealer sees loads of upside for the Goal Corp share worth. It presently has a purchase score and $18.40 worth goal on its shares. This means a 20% return for buyers over the following 12 months.

TechnologyOne Ltd (ASX: TNE)

One other ASX tech share for buyers to think about is enterprise software program supplier TechnologyOne.

It offers enterprise software program to clients within the authorities, native authorities, monetary companies, well being & group companies, training, and utilities and managed companies markets.

In FY 2021, TechnologyOne reported a web revenue of $72.7 million. Based on a word out of Bell Potter, its analysts predict this to develop by 18% to $85.7 million in FY 2022.

However the firm’s progress is unlikely to cease there. TechnologyOne is within the strategy of shifting to a software-as-a-service (SaaS) enterprise mannequin. That is anticipated to result in the corporate having excessive recurring revenues and stronger margins. Administration actually has confidence within the shift. It continues to focus on the virtually doubling of its ARR to $500 million by FY 2026.

Bell Potter additionally seems assured that the transition will probably be a hit and is forecasting its sturdy progress to proceed within the coming years. Consequently, the dealer presently has a purchase score and $14.25 worth goal on its shares. This means potential upside of 23% for buyers based mostly on the present TechnologyOne share worth.

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