If you have room for a new growth share or two in your portfolio in March, then you could do a lot worse than the highly rated shares listed below.
Here’s what you need to know about these growing companies:
Megaport Ltd (ASX: MP1)
Megaport could be a grow share to buy. It is the leading cloud connectivity and networking solutions provider benefiting from its first mover advantage in a market experiencing structural tailwinds.
The company recently caught the eye of analysts at Goldman Sachs, which put a buy rating and $19.90 price target on the company’s shares.
While the broker acknowledges that its shares are not conventionally cheap, it believes they deserve to trade at a premium given Megaport’s strong growth potential thanks to its exposure to the $129 billion spent on fixed enterprise networking across its current geographies.
Goldman commented: “While MP1’s does not screen as absolutely cheap, we believe its multiple reflects (1) a scarcity of opportunity for investors in Australia to get exposure to the public cloud adoption theme, (2) its competitive landscape being relatively more benign than peer group, and (3) its structural tailwinds having more visibility and resilience than its peers (i.e. public cloud migration a global theme). We note that MP1 is now also trading at the lower end of its historical EV/Sales range.”
Pro Medicus Limited (ASX: PME)
Another ASX growth share that could be in the buy zone is Pro Medicus. It is a healthcare technology company that provides industry-leading software to facilitate the clinical assessment of medical images.
Demand for its software from many of the largest healthcare institutions continues grow as they shift away from legacy systems and into the cloud. This has underpinned strong growth over the last decade.
The team at Bell Potter appear confident this will continue. Following Pro Medicus’ half year results, the broker retained its buy rating and $55.00 price target on the company’s shares.
Bell Potter commented: “PME’s 1H22 revenue grew by 40% or $12.7m vs pcp to $44.3m. The revenue increase represents 22% growth over 2H21. EBIT margin was maintained at ~66% and EBIT grew by 61% to $29.1m. NPAT increased by 52% to $20.7m. PME remains a high priced healthcare technology offering that continues to deliver impressive top line growth and earnings leverage.”
The post Brokers name 2 exciting ASX growth shares to buy in March appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- 2 quality ASX shares that have been sold-off
- Here’s how rich you’d be if you invested $20k in these shares 10 years ago
- 2 buy-rated ASX growth shares with big futures
- 2 exciting ASX growth shares analysts are tipping for big things
- Top brokers name 3 ASX shares to sell today
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 and has recommended MEGAPORT FPO and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/PmwEaNA
Leave a Reply