There are a lot of growth shares for investors to choose from on the Australian share market.
Two in the tech sector that come highly rated are listed below. Here’s why they have been named as ones to buy:
Afterpay Ltd (ASX: APT)
Afterpay is a leading payments company with a focus on the buy now pay later (BNPL) market. It is also planning to launch savings accounts and cash flow tools through a partnership with Westpac Banking Corp (ASX: WBC) in the near future. It has been growing at an extraordinary rate over the last few years thanks to the increasing popularity of the BNPL payment method with both consumers and retailers. So much so, during the first quarter of FY 2021, Afterpay recorded underlying sales growth of 115% to $4.1 billion.
One broker that was pleased with this performance was Morgan Stanley. In response to its quarterly update, the broker retained its overweight rating and $115.00 price target. The Afterpay share price is currently fetching $101.85, which means potential upside of approximately 13% based on this price target.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a fast-growing donor management and community engagement provider to the church market. Thanks to the quality of its platform, its leadership position, and the shift to a cashless society, it has been growing at a very strong rate. In fact, earlier this month the company released its half year results and revealed a 48% increase in total processing volume to US$3.2 billion and a 53% increase in operating revenue to US$85.6 million. And thanks to the further widening of its margins, EBITDAF grew 177% to US$26.7 million.
This caught the eye of analysts at Goldman Sachs, who have put a conviction buy rating and $10.35 price target on the company’s shares. Based on the current Pushpay share price of $7.07, this price target implies potential upside of over 46%.
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More reading
- 5 things to watch on the ASX 200 next week
- Why are ASX tech shares all over the place today?
- Why the Aristocrat (ASX:ALL) share price could jump next week
- Top brokers name 3 ASX shares to buy today
- ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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