Morgans names 2 ASX growth shares to buy

If you’re interested in growth shares, then read on. Morgans has recently named a number of shares that it is very positive on.

Two growth shares that have received the thumbs up are listed below. Here’s what it is saying about them:

Pro Medicus Limited (ASX: PME)

Morgans is a big fan of this health imaging technology company and has suggested that investors take advantage of any share price weakness.

It likes the company due to its strong long term growth potential thanks to the quality of its offering and industry tailwinds. It commented:

Pro Medicus is a leading healthcare end-to-end imaging software and service provider, servicing a number of the world’s largest imaging centres and health care groups. We like the space, with high single digit organic volume growth and long-term industry tailwinds. Profitability in the business is backed up by long-term contracted revenues with some of the world’s largest hospital systems and growing pipeline of tenders which we view will provide continued growth over the medium to long term. We view the business as best-in-class as it heads into CY22 with a step-change in billable contracts following the significant volume and value of contracts signed over the last 12-18 months. The recent market weakness in high growth tech names has provided an opportunity for reasonable entry points.

Morgans has an add rating and $58.18 price target on the company’s shares.

Webjet Limited (ASX: WEB)

Another ASX growth share that could be a buy according to Morgans is Webjet. The broker believes that the online travel agent will come out of the COVID crisis in a much strong position. It explained:

Based on our forecasts, WEB is trading on an FY24 recovery year PE which is at a discount to its five-year average PE (pre-COVID). Its WebBeds (B2B) business is highly leveraged to the northern hemisphere summer holiday season which is forecast to be strong. Webjet OTA is leveraged to ANZ domestic and international travel. Management also wasted a crisis and cost reduction initiatives will reduce its cost base by 20% across the group once the business returns to scale.

Morgans has an add rating and $6.40 price target on Webjet’s shares.

The post Morgans names 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

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More reading

• Here are 3 top ASX growth shares that analysts rate as buys
• Looking to buy ASX shares? Expert reveals ‘one metric to assess the quality of a business’
• Here are the top 10 ASX 200 shares today
• Why is the Webjet share price heading 5% skywards on Tuesday?
• Broker names 2 of the best ASX shares to buy now

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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Webjet Ltd. 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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