Analysts have named these top growth shares as buys

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

The Australian share market is home to plenty of companies with the potential to grow strongly in the coming years.

Two such shares are listed below. Here’s why analysts rate them as growth shares to buy:

Nitro Software Ltd (ASX: NTO)

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

Goldman Sachs is very positive on the company and believes it has significant long term growth potential. And with its shares falling heavily this year, it feels they are trading at a discount for investors.

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

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share to look at is wine giant Treasury Wine. It is the company behind the 19 Crimes, Penfolds, and Wolf Blass brands, to name just three.

The team at Morgans are feeling very bullish right now. Particularly with its shares trading at an attractive level compared to its global wine sector peers. Morgans explained:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

The broker has an add rating and $13.93 price target on the company’s shares.

The post Analysts have named these top growth shares as 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited and Treasury Wine Estates 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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