Here are 2 ASX tech stocks to buy according to brokers
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ASX tech stocks could be attractive investments, according to some of Australia’s leading investment brokers.
The early months of 2022 have seen volatility rise on the ASX amid high inflation and the prospect of higher interest rates.
After the recent declines, brokers think these two ASX tech stocks are opportunities.
Since the start of calendar year 2022, Booktopia’s share price has fallen by approximately 50%.
The company saw revenue continue to grow, but profitability declined in the first half of FY22. He said revenue rose 15.5% to $130 million, while earnings before interest, taxes, depreciation and amortization (EBITDA) had fallen 49% to $4.1 million.
Booktopia said first-half revenue and profit were impacted by the Sydney lockdowns. Its distribution center is located in one of the areas of Sydney that has seen the most restrictive closures. The company decided to limit marketing and forgo sales to focus on protecting employees and complying with government regulations.
Management said operations have largely returned to a more normal environment and the business can “now resume strong revenue growth but with a renewed focus on improving earnings” without compromising areas needed to support growth. longer term.
ASX’s technology share aims to secure market share in the growing online book market.
It is currently priced as a buy by broker Morgans, with a price target of $1.85. That’s about 160% more than today.
Life360 operates a platform for families with features such as communications, driving safety and location sharing.
In its latest quarterly update, it said it achieved 63% year-over-year growth in subscription revenue. Annualized monthly revenue increased to US$166.1 million. Monthly active users grew 36% year-over-year to 38.3 million, an increase of 8% quarter-on-quarter.
However, the ASX technology share announced that its plans for a dual listing in the United States had ceased.
Management said the results of the Tile upsell trial were very encouraging, resulting in a 35% increase in Life360 subscriptions compared to the control group.
Life360 is accelerating the integration of Tile and Jiobit (tracking devices) to deliver targeted sustainable cash flow by the end of 2023. The company expects 2024 to be the first full year of positive cash flow.
In 2022, the tech company expects its core Life360 subscription revenue to grow by more than 50%. He expects consolidated revenue to be in the range of US$245 million to US$275 million. And he expects underlying EBITDA to be a loss of between US$32 million and US$38 million.
Life360 is currently ranked as one by Morgan Stanley, with a price target of $8.60.