Sat. May 28th, 2022

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Due to the recent weakness in the technology sector, a number of quality stocks have retreated significantly from their heights. This has potentially created an buying opportunity for investors.

Two such shares are listed below. Here’s what you need to know about these buy-rated technology stocks:

The first ASX tech stock for investors to look at is Nitro Software. It is the document productivity company behind Nitro Productivity Suite. This suite provides integrated PDF productivity and eSignature tools for large and small businesses globally. This includes over two-thirds of the Fortune 500.

Bell Potter is bullish on Nitro Software. Especially considering the recent acquisition of Connective NV for US $ 81 million, which the broker described as game-changing.

It commented: “The rationale for the acquisition is that it will accelerate and improve Nitro’s eSign, eID (electronic identity) and document workflows. It will also position Nitro to become the third global player in the corporate eSign market with DocuSign and Adobe . “

Bell Potter has a purchase valuation and a price target of $ 4.50 on the company’s shares. This suggests that the Nitro Software stock price may double from the current level of $ 2.17.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX tech stock that is highly rated is PointsBet. It is a growing sports betting operator and iGaming provider offering innovative sports and betting products and services via a scalable cloud-based platform.

PointsBet currently operates in ANZ and the North American market. The latter is backed by his deal with US sports broadcaster NBCUniversal. This deal puts the PointsBet brand ahead of millions of sports fans across the United States, driving strong customer growth and revenue in the country.

And while its marketing spending has been higher than many had expected due to fierce competition, Goldman Sachs believes it will bear fruit in the future.

It commented: “Overall, we remain positive towards PBH, with our dissertation supported by i) PBH’s leverage for the burgeoning US sports betting and iGaming market, which we anticipate will be a> US $ 50 billion TAM opportunity at expiration, ii ) our view that PBH remains well positioned to capitalize due to its internal technology stack; iii) upward risk of long-term sustainable margins in the Aus and US, and iv) scalability benefits ahead from NBCUniversal leads and broader coverage from government rollouts. “

Goldman currently has a buy rating and a price target of $ 12.79 on the company’s shares. This implies 100% upside from the current PointsBet stock price of $ 6.38.

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