2 of the best ASX tech stocks to buy now

The tech sector has come under significant pressure in recent weeks, but every cloud has its silver lining.

The silver lining on this occasion is that there are now ASX tech stocks trading at more attractive levels for patient investors.

Two ASX tech stocks that Bell Potter has put on its Australian equities panel in March are listed below. These are the shares that it believes offer attractive risk-adjusted returns over the long term.

Let's see what the broker is recommending that Aussie investors buy this month:

Catapult Group International Ltd (ASX: CAT)

The first ASX tech stock that the broker is recommending is Catapult. It is a leading global provider of elite athlete wearables.

Bell Potter notes that its key target market is elite sport teams and organisations. In addition, the acquisition of SBG now gives the company a presence in motorsports.

The broker likes the company partly due to its large recurring revenue. It explains:

Catapult generates most of its revenue through capital and subscription sales where the former is one-off in nature and the latter is recurring. Subscription revenue is now by far the largest component of revenue and represented 92% of total FY24 and 1HFY25 revenue.

We are positive on the stock from a top line growth perspective and remain optimistic given a large addressable market for CAT along with a potential catalyst for the stock is likely inclusion in the S&P/ASX 300 index in the next rebalance in March next year.

Gentrack Group Ltd (ASX: GTK)

Another ASX tech stock that gets the thumbs up from analysts at Bell Potter is Gentrack.

It is a specialist software developer to energy utilities, water companies, and airports. The latter involves providing flight information display systems (FIDS) at airports across the world. This includes in Queenstown, Adelaide, and Sydney.

Bell Potter believes the company has a strong growth outlook thanks to digital transformations. This is particularly the case in renewables and battery storage, which need modernised IT infrastructure.

Commenting on the company, the broker said:

Gentrack provides billing products and Customer Relationship Management solutions to energy and water utilities and has robust growth prospects attributed to recurring revenue and one-off projects related to digital transformations.

Specifically, the emergence of renewables and battery storage is increasing complexity in data management and contributing to the need for modernised IT infrastructure supporting earnings growth for GTK.

The post 2 of the best ASX tech stocks to buy now appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Group International and Gentrack Group. The Motley Fool Australia has positions in and has recommended Catapult Group International and Gentrack Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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