Broker Macquarie has identified 3 ASX stock picks in the technology and telecommunications sectors with upside.

For context, the S&P/ASX All Technology Index (ASX: XTX) has fallen more than 12% so far this year. 

Megaport Ltd (ASX: MP1)

Megaport is an Australian technology company specialising in Network as a Service (NaaS) solutions. It operates a global Software Defined Network (SDN) that allows businesses to connect networks to various services through open API.

It has had a big start to the year, rising 35.31% since the beginning of 2025. However the share price is still down more than 27% over the last 12 months. 

Broker Macquarie believes there is still room for further share price growth. 

At the time of writing, shares are trading at $10.04 each, with Macquarie placing a price target of $14.30. This indicates 42.35% upside.

Macquarie attributes part of this upside to an 11.6% YoY growth in revenue. 

"MP1 is a growth stock. We think revenue growth is about to accelerate in a low-growth environment, signalling the start of an upgrade cycle."

The broker is also optimistic on the future of the company due to recent partnership announcements with Digital Ocean, 6Wind, Angola Cables, Telcables Brazil, CloudFirst Europe, 365 Data Centres.

Elsewhere, Bell Potter has a price target of $11.80 and TradingView has a price target of $12.05.

Codan Ltd (ASX: CDA)

Codan provides electronic solutions, focusing on metal detection and communications technology. 

The Codan share price is down 8.51% since start the year, however Macquarie believes there is upside. 

At the time of writing, Codan shares are trading at $14.83, with Macquarie sharing a target price of $17.00, indicating a 14.63% upside. 

Macquarie has Codan as an ASX stock pick partly due to its current CEO. According to Macquarie, they have consistently delivered strong growth in the communications business over the past three years. 

"The outlook for Detection remains positive in FY26-27 boosted by the release of new products across the product range (low end to high end) and also gold price >US$3,000/oz."

Other valuations indicate upside for Codan shares, with broker Bell Potter having a price target of $18.17. 

TradingView has a price target of $17.93.

IRESS Ltd (ASX: IRE)

Iress is an Australian-based technology company that develops and provides software solutions for the financial services industry.

Shares in Iress are currently trading at $7.89 each and have fallen 15.07% so far this year. 

According to Macquarie's report, Iress has upside due to projected cost reduction in CY26 and CY27. 

Key growth drivers include cost savings, more consistent pricing, keeping strong market share in core businesses, and potential upside in the UK wealth management space.

"Adjusted EBITDA guidance is $127m to $135m and NPATA guidance is $54m to $62m."

Macquarie has listed a price target of $8.42, which would be a modest upside of 6.71%. 

However, other brokers have a higher upside on the stock price. Bell Potter has a price target of $9.90, which is a 25.48% upside and tradingView has a target price of $9.50 (roughly 20% upside).