Image Source: Getty Images
There are many companies in the technology sector that have strong growth potential.
Here are two of the most acclaimed ones: Here’s what you need to know about these technology shares:
Adore Beauty Group Limited (ASX: ABY)
The first technology share to consider is Adore Beauty, Australia’s leading online beauty retailer.
But calling it just an online cosmetology retailer is a bit unfortunate because it’s much more common. Since its launch in 2000, Adore Beauty has evolved into an integrated content, marketing, and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.
It has grown strongly over the past few years and will continue in 2022. AdoreBeauty released a first-quarter update last week, reporting revenue growth of 25% to $ 63.8 million. This was supported by a 24% increase in active customers to 874,000 and customer growth returning to 63%.
Indeed, even on an annualized basis, this is only part of the Australian beauty and personal care (BPC) market and is estimated to be worth $ 11.2 billion. In addition, it is expected to grow at a CAGR of 26% by 2024.
Morgan Stanley is a fan of the company. Currently, the stock has an overvalue and a $ 6.00 price target.
Another notable ASX technology share is Nitro Software. A software company that aims to drive digital transformation in organizations around the world using the Nitro Productivity Suite. The Nitro Productivity Suite provides customers with integrated PDF productivity and digital signature tools through software as a horizontal service and desktop-based software solutions.
In 2021, Nitro is aiming for an annual recurring revenue (ARR) of $ 39 million to $ 42 million. This will increase significantly year-over-year, but will still fall short of its estimated total addressable market of $ 28 billion.
The UBS team is very positive about Nitro. Last week they started reporting on the company with a purchase rating and a price target of $ 4.70. Brokers believe that Nitro’s ARR could exceed US $ 100 million by 2024.
Two excellent ASX technology stocks that suggest big
Source link Two excellent ASX technology stocks that suggest big