2 high quality ASX tech shares tipped as buys

Could these ASX tech shares offer strong long term returns?

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If you're looking for shares to buy, then the tech sector could be a great place to start. In this sector there are a number of companies with the potential to grow strongly over the next 10 years.

With that in mind, I have picked out two top tech options to consider. Here's what you need to know about them:

Image source: Getty Images

Altium Limited (ASX: ALU)

The first ASX tech share to look at is this printed circuit board (PCB) focused electronic design software provider. 

While COVID-19 appears to be weighing on demand in the near term, Altium appears well-positioned for long term growth once it passes. This due to its industry-leading platform and a number of tailwinds which are underpinning increasing demand for electronic design software.

These tailwinds include the rapidly growing artificial intelligence and internet of things markets, which are leading to a proliferation of electronic devices globally. And as the vast majority of electronic devices have PCBs inside them, this bodes well for Altium.

Citi is positive on Altium and currently has a buy rating and $33.50 price target on its shares. The broker believes Altium is nearing the end of the COVID-19 related downgrade cycle and well-placed for growth over the long term.

Life360 Inc (ASX: 360)

Another ASX tech share to look at is San Francisco-based app maker Life360. It provides families with a market leading app which includes features such as real-time location sharing and notifications and Crash Detection and Roadside Assistance.

Based on the 28 million monthly active users the company has, these features appear to be resonating well with families.

Pleasingly, the company has just strengthened its offering further. This was achieved through the the acquisition of Jiobit for US$37 million. Management notes that the addition of the wearable location device provider is very supportive of its growth strategy and opens up cross-selling opportunities.

Credit Suisse is a big fan of the company. The broker currently has an outperform rating and $8.30 price target on its shares. It has been pleased with its performance in recent quarters and believes the opportunity to further monetise its user base is becoming increasingly clear.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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