Experts have named these top growth shares as buys

chart showing an increasing share price

chart showing an increasing share price

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:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is a leading appliance manufacturer behind a range of brands.

It has been growing at a solid rate over the last decade and this is expected to continue in FY 2022. In fact, a recent presentation reveals that Breville expects its earnings before interest and tax (EBIT) in FY 2022 “to be consistent with the markets’ consensus forecast of ~$156m.” This will be a 14.3% increase from FY 2021’s EBIT of $136.4 million.

Morgans is a fan of Breville and believes it is well-placed for strong growth in the coming years.

In our opinion, BRG deserves to trade at a premium multiple. It is positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share, notably in geographies into which it has recently launched. Our rating remains ADD.

The broker currently has an add rating and $32.00 price target on its shares.

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.

Its shares have been hit hard this year due to weakness in the tech sector, which has been felt hardest among loss-making companies. And while Nitro is still some way from being profitable, it has a strong balance sheet.

Goldman Sachs is bullish due to Nitro’s long term growth potential. It 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.

The broker currently has a buy rating and $2.35 price target on the company’s shares.

The post Experts have named these top growth shares as buys appeared first on The Motley Fool Australia.

Should you invest $1,000 in Breville Group Ltd right now?

Before you consider Breville Group Ltd, 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 Breville Group Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s