To The Moon

This is an article to look at 5 Large-Cap Tech related stocks with good revenue growth. $Rea Group(REA.AU)$ ,$Wisetech Global(WTC.AU)$ ,$Xero(XRO.AU)$ ,$TPG TELECOM LTD(TPG.AU)$ ,$Nextdc(NXT.AU)$ .

Source: www.msn.com

Below shared how the share prices have faired and why the stock still well worth keeping an eye on for continued revenue growth.

Inflation and interest rates may have been key culprits for the decline of the ASX All Technologies Index. Names like Xero, REA Group and TPG all fell hard in the last few months of FY22. The ASX All Technologies Index (ASX: ) fell hard in FY22, dropping by around 35%.

If inflation calms down quicker than expected, that could be beneficial for the ASX All Technologies Index.

1.$Rea Group(REA.AU)$

REA Group is the dominant player in real estate listings in the Australian market with its realestate.com.au website. REA is the largest property and property-related services group on the ASX, valued at approximately AU$15.98 billion.

As of Tuesday，$Rea Group(REA.AU)$ YTD in 2022 is -27.42%.  

The REA share price has tumbled this year but is close to 80% higher since 2017. The board has consistently increased its dividends to shareholders (except during COVID-19) throughout the decade, In total, REA has paid $5.94 in dividends from September 2017 to March 2022.

The team at Citi appear to see recent weakness in the REA share price as a buying opportunity. The broker recently put a buy rating and $153.50 price target on its shares.

Its analysts were pleased with what management said at its recent investor day event and appear confident that the company’s growth can continue despite the slowing housing market.

Cite noted：

While we do not expect the Investor Day to change sentiment on the stock in the short term given the slowing house market, it did highlight the levers (especially new products and price) in the core listings business to drive growth in the near term, while India and potential direct monetisation of the consumer through Property.com.au presents long-term growth potential.

2.$Wisetech Global(WTC.AU)$

Tech company WiseTech provides software solutions for global supply chain operators, it's18,000 customers span more than 165 countries and include 42 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders.

The WiseTech share price is $48.7. That’s around 20% lower than its highest point ever, reached late last year. 

$Wisetech Global(WTC.AU)$ YTD in 2022 is -16.77%, WiseTech is performing in line with most of its peers in tech sector of the ASX 200

2022 looks to have been a good one for WiseTech on paper. The company released seemingly strong half-year earnings and upgraded its guidance in February.

Recomend to Read: Weekly Highlights of the Larger Stocks in Each ASX Sectors！

3.$Xero(XRO.AU)$

Xero is a large cloud accounting technology business. It has built a global subscriber base, with a particularly large presence in Australia, the United Kingdom, and New Zealand.

The broker Citi thinks the Xero share price has plenty of potential.

It notes the company’s latest price increase for subscribers, which could boost average revenue per user. Citi rates Xero a buy with a share price target of $108.

Citi thinks that the higher subscription price will lead to a rise of close to 10% for Xero’s average revenue per user (ARPU), which could lead to the business doing better than previously predicted.

Goldman Sachs recently reaffirmed their buy rating with a $113.00 price target for XRO. The $Xero(XRO.AU)$ YTD in 2022 -36.98%.

4.$TPG TELECOM LTD(TPG.AU)$

TPG Telecom was formed by a merger of Vodafone and TPG in Jul 2020. The merger resulted in the shares owned by Vodafone, Hutchison and David Teoh, being in escrow.  

The Australian Competition and Consumer Commission (ACCC) received an application for merger approval from Telstra and TPG on May 23, 2022 related to three interrelated agreements that would put in place a Multi-Operator Core Network (MOCN) arrangement.

But TPG and Telstra rival Optus is not happy about this tie-up. Last month, the Singaporean telco put out a press release calling on the Australian Competition and Consumer Commission (ACCC) to reconsider the deal.

The proposed agreement between Telstra and TPG is really all about reducing costs, building market share and being able to offer new and enhanced products to businesses and communities in certain regional and urban fringe areas (labelled the Regional Coverage Zone in the agreement).

This will see TPG gain access to roughly 3,700 of Telstra’s mobile network assets in regional and suburban areas, resulting in the company boosting its 4G coverage from 96% to 98.8% of the Australian population. In return, Telstra is expecting to bank an extra $1.6-$1.8 billion in revenues over the next decade.

$TPG TELECOM LTD(TPG.AU)$ share price climbs as telco bites back, TPG YTD in 2022 is 7.4%.

5.$Nextdc(NXT.AU)$

NextDC. is a leading data centre operator which has been growing at a consistently strong rate for a number of years.

The team at Morgans is bullish on the company due to its analysts’ belief that NextDC is well-placed for long term growth. This is thanks to the strong market position its world class data centre network has carved out for itself over the last decade, the industry’s significant barrier to entry, and its expansion opportunities.

Morgans commented:

We retain our Add recommendation and highlight that NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites.

Morgans retained its add rating with a $13.01 price target. The YTD of $Nextdc(NXT.AU)$ -9.3%.