Analysts say these top ASX growth shares are buys

A woman in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains that one top broker thinks the Appen share price is a buy

A woman in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains that one top broker thinks the Appen share price is a buy

If you’re looking for growth shares to buy, then you may want to consider the two listed below that brokers are bullish on.

Here’s what you need to know about these growth shares:

Cochlear Limited (ASX: COH)

The first ASX growth share for investors to look at is Cochlear. It is one of the world’s leading hearing solutions companies, which is a great position to be in given ageing populations around the world and the market’s significant barriers to entry.

Analysts at Morgans are very positive on the company, particularly given its improving earnings profile post-pandemic.

Morgans commented:

Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.

The broker currently has an add rating and $244.50 price target on Cochlear’s shares. Based on the current Cochlear share price of $208.59, this implies potential upside of 17% for investors.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share that analysts rate highly is Nitro. It is a technology company that provides businesses of all size with integrated PDF productivity and eSignature tools.

Unfortunately, the Nitro share price has fallen heavily this year despite reporting strong growth. This has been driven by significant weakness in the tech sector, particularly for loss-making companies.

And while Nitro is not expected to be profitable for a few more years, the team at Goldman Sachs believe investors should look beyond this. Especially given that it is well-funded and has a huge market opportunity to grow into in the future.

Goldman Sachs commented:

We appreciate that a material re-rate likely requires a change in sentiment towards unprofitable tech companies, however we think NTO screens attractively relative to tech peers and on a longer-term view. Our focus now shifts to NTO’s execution on its pipeline of new business and e-sign cross-sell opportunities, with concerns over balance sheet now eased. We see NTO as an attractive long-term growth opportunity at a discounted valuation.

Goldman has a buy rating and $2.35 price target on the company’s shares. Based on the current Nitro share price of $1.18, this suggests almost 100% upside for investors.

The post Analysts say these top ASX growth shares are buys appeared first on The Motley Fool Australia.

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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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Nitro Software Limited. 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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