The tech sector has been a sea of red in recent weeks. This has seen the S&P ASX All Technology index lose 12% of its value since 19 February.
While this is disappointing, it could have created a compelling buying opportunity for investors, with a number of ASX 200 tech stocks trading at levels that analysts think are very attractive.
Two stocks that could be worth considering are listed below. Here's what you need to know about them:
The Pro Medicus share price is down almost 15% from its 52-week high.
Bell Potter sees this as a buying opportunity, believing that the ASX 200 tech stock is destined to continue its impressive growth in the coming years thanks to its Visage health imaging solution. It said:
The PME full stack solution continues to wipe the floor with competitors – 10 contract announcements in the LTM including two new academic medical centres clients. FY25/26 revenues upgraded by 4% and 2% respectively. In addition we expect further growth in the cardiology space with the first small scale implementation to take place in April 2025.
We see no stopping the current momentum in new contract wins with margins more likely to grow as hospitals begrudgingly adopt the Visage despite its premium price, due to the absence of any viable alternative to meet productivity requirements.
Bell Potter has a buy rating and $330.00 price target on its shares. This implies potential upside of almost 30% for investors.
A third ASX 200 tech stock that could be a buy following recent weakness is WiseTech Global.
It is a leading global provider of software solutions to the logistics services industry with its CargoWise One platform. Its shares are down 37% from their 52-week high.
Goldman Sachs is bullish on the company due to its strong competitive position. It explains:
We are positive on WiseTech's strong competitive position which contributes to efficiency gains for LGFF's. Over the short-to-medium term we expect WiseTech's earnings profile to benefit from new product releases such as Container Transport Optimizer, as well as the company continuing to grow penetration of their core business.
We expect WiseTech will continue to focus on product development over the long-term, which should underpin margin expansion and earnings growth. Hence, with the risk/reward profile skewed to the upside we are Buy rated.
Goldman currently has a buy rating and $128.00 price target on its shares. This implies potential upside of 45% for investors from current levels.
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