Looking for growth shares to buy? Then you might want to consider the two listed below.
Here’s why they have been tipped as growth shares to buy:
Hipages Group Holdings Ltd (ASX: HPG)
The first ASX growth share to look at is this leading Australian-based online platform and software as a service (SaaS) provider. Hipages’ increasingly popular platform connects consumers with trusted tradies to simplify home improvement. It was on form in FY 2021, reporting a 22% year on year jump to $55.8 million. This was ahead of its guidance for the year. It also reported a 27% increase in its monthly recurring revenue (MRR) to $5.2 million. This annualises to $62.4 million.
This went down well with analysts at Goldman Sachs. In response they have retained their buy rating and lifted their price target to $4.35. It notes that Hipages currently captures <1% of a total $97 billion tradie business spend, representing a meaningful opportunity for growth.
Zip Co Ltd (ASX: Z1P)
A final ASX growth share to look at is Zip. This leading buy now pay later (BNPL) provider appears well-placed for growth over the 2020s due to its international expansion and the increasing popularity of the payment method with consumers and merchants. As well as having a $5 trillion market opportunity in the United States, the company has been expanding into the lucrative European and Asian markets through acquisitions. Combined, this gives Zip a significantly long runway for growth.
The team at Morgans remains very positive on Zip. In response to its recent full year results, the broker retained its add rating and lifted its price target to $8.87. This compares very favourably to the latest Zip share price of $6.90. Morgans continues to see longer term upside if Zip can execute on its ambitions of becoming a global payments player.
The post Why Zip (ASX:Z1P) and this fantastic ASX growth share could be buys appeared first on The Motley Fool Australia.
Should you invest $1,000 in Zip right now?
Before you consider Zip, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.
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*Returns as of August 16th 2021
More reading
- Own Zip (ASX:Z1P) shares? Here’s what to look out for in FY22.
- How does Afterpay (ASX:APT) earnings result compare to Zip?
- Hipages (ASX:HPG) share price soars 6% on realised guidance
- 3 rapidly growing ASX tech shares to buy
- ASX 200 rises, WiseTech soars, Zip drops
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. owns shares of and has recommended Hipages Group Holdings Ltd. and ZIPCOLTD FPO. 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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