Brokers say these are the best ASX growth shares to buy now

If you’re wanting to pick up some ASX growth shares, then you may want to consider the two listed below.

Both of these growth shares have been tipped as buys with meaningful upside potential. Here’s what you need to know about them:

Corporate Travel Management Ltd (ASX: CTD)

Morgans is feeling very bullish on this ASX growth share right now.

In fact, the broker has named it as its top pick in the travel sector and tipped it as a great buy and hold option.

This is due to Morgans’ belief that the company is well-placed for growth over the medium term thanks to acquisitions, its lower cost base, and technology development.

Its analysts explained:

For investors that can take a medium-term view, we see substantial upside in its share price as the company recovers from the COVID-affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost-out opportunities and continued to develop its market-leading technology offering which means it will require less staff in the future.

Morgans has an add rating and $25.65 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that brokers are bullish on is TechnologyOne.

It is a leading enterprise software company serving government, local government, and private sector customers.

TechnologyOne appears well-placed for growth over the next decade thanks to its shift to a software as a service (SaaS) business model. This is underpinning higher quality and higher margin revenues, which Bell Potter expects to support strong earnings growth.

The broker explained:

The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution. The migration is now around threequarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.

Bell Potter currently has a buy rating and $14.25 price target on TechnologyOne’s shares.

The post Brokers say these are the best ASX growth shares to buy now 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 Corporate Travel Management Limited and TechnologyOne 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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