These ASX tech stocks are buying: Goldman Sachs

If you’re looking to bolster your portfolio with some ASX tech stocks, you might want to check out the two listed below that were bought by Goldman Sachs.

Here’s what the broker is saying about these ASX tech stocks:

Readytech Holdings Ltd (ASX: RDY)

It is the first ASX technology share that Goldman Sachs has rated at buy. A provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

As well as a positive long-term growth outlook, the broker likes the company due to its defensive earnings. He explained.

RDY remains a technology value play in our coverage universe, trading at a >50% discount to peers when calculated for its strong growth outlook. Government software is a pocket of strength and resilience in TMT (~3/4 of RDY’s revenues) and we are positive on RDY’s ability to deliver mid-teens organic growth through the cycle to deliver profit margins.

Goldman has a buy rating and a $4.45 price target on the stock.

Another ASX technology share that Goldman Sachs is a fan of is Life360.

It is a growing space technology company with nearly 50 million global active users.

Goldman is impressed with Life360’s performance and believes the company is about to reach an inflection point. He commented.

In our view, Life360 is approaching an inflection point as it proves the pricing power of its subscription business model and exits the unprofitable technology basket. The impact of full-year price increases will drive most of CY23 subscription revenue growth, with paying subscribers switching payers in reverse (expected to end 1Q23).

Another positive is the large growth runway. Goldman estimates that the company has “”The US$12bn global TAM has a significant opportunity to expand its product portfolio, increase average revenue per payer circle (ARPPC), increase payer conversion and lift penetration rates outside the US.

That is why the brokerage has a buy rating and a $7.90 price target on Life360’s shares.