2 ASX growth shares that this leading broker rates as buys

Two brokers pointing and analysing a share price.

Two brokers pointing and analysing a share price.

If you’re a fan of growth shares like I am, then you’ll be pleased to hear that a number have recently been rated as buys by leading brokers.

Two such ASX shares are listed below. Here’s what analysts at Goldman Sachs are saying about them:

IDP Education Ltd (ASX: IEL)

The first ASX growth share that could be a good option for investors is IDP Education.

It is a provider of international student placement services and English language testing services across the world.

IDP is also the co-owner of the IELTS language test. This is preeminent English language test, which millions of students take each year.

IDP has been growing at a rapid rate since the worst of the pandemic passed and appears well-placed to continue this positive form in the coming years. This is thanks to structural growth and recent acquisitions.

Goldman Sachs is very bullish and is forecasting a 68% three-year earnings per share compound annual growth rate between FY 2021 and FY 2024.

The broker currently has a buy rating and $36.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a good option for investors according to Goldman Sachs is Temple & Webster.

It is Australia’s leading pure-play online retailer of furniture and homewares.

Goldman Sachs believes Temple & Webster is well-placed for long term growth. This is thanks to its leadership position in a retail category that is still only in the early stages of shifting online.

The broker also highlights that the category favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry. Temple & Webster ticks these boxes.

Goldman has a buy rating and $7.55 price target on the company’s shares.

The post 2 ASX growth shares that this leading broker rates 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 positions in and has recommended Idp Education Pty Ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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