If you’re a growth investor, then you’re in luck. The Australian share market is home to a good number of shares that are growing at a strong rate.
Two exciting ASX growth shares to consider buying are listed below. Here’s what you need to know about them:
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. It provides innovative human resources, payroll, and rostering technology to over 1,400 businesses across the APAC region.
Management notes that its solutions are at the forefront of a disruptive technology industry, driven by the transition of organisations towards online systems which automate processes and aggregate information in new and intelligent ways.
The company has also been strengthening its offering (and cross-selling opportunities) through the acquisition of complementary business. This includes through the acquisitions of Webexpenses for 13 million pounds and Breathe for $32 million.
Morgan Stanley is a fan of the company and currently has an overweight rating and $9.70 price target on its shares.
Nuix Limited (ASX: NXL)
Nuix is a leading provider of investigative analytics and intelligence software. It specialises in transforming massive amounts of messy data from emails, social media, communications, and other human-generated content into actionable intelligence.
The company’s investigative analytics and intelligence software can help users understand the context and connections across billions of items of data. They can search it, filter it, visualise it, analyse it, and find the truth it holds.
Its software has been used in a number of important investigations. This includes the Panama Papers and the Banking Royal Commission.
Demand has been strong for its services and led to Nuix reporting a 25.9% increase in total revenue to $175.9 million in FY 2020. This revenue is largely from subscriptions, with subscription revenues now accounting for 88.7% of its total revenue.
Analysts at Morgan Stanley are also very positive on Nuix. They currently have an overweight rating and $11.00 price target on the company’s shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Elmo Software and Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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