If you’re a growth-focused investor then you’re in luck. The Australian share market is home to a number of quality shares that could grow strongly in the future.
Two top ASX growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:
ResMed Inc. (ASX: RMD)
The first ASX growth share to look at is ResMed. It is a medical device company with a focus on sleep treatment products.
Over the last decade, ResMed has been growing at a consistently strong rate. This has been driven by its industry-leading products, growing addressable market, and highly successful bolt-on acquisitions such as Brightree.
Positively, the company looks well-placed to continue this positive form over the next decade. Especially given the growing prevalence of sleep disorders globally.
Management estimates that there are 936 million people with sleep apnoea globally, with the vast majority of these sufferers undiagnosed. But it doesn’t stop there. In addition, there are almost 400 million people who suffer from chronic obstructive pulmonary disease (COPD) and close to 350 million people living with asthma.
One broker that is very positive on the company’s future is Morgans. It has an add rating and $30.09 price target on its shares.
Zip Co Ltd (ASX: Z1P)
Another ASX growth share to look at is Zip. It is a leading buy now pay later provider which has been growing at a rapid rate thanks to the growing popularity of the payment method with consumers and merchants, the decline in credit card usage, and its international expansion.
Positively, this strong form has continued in FY 2021 despite increasing competition. For the six months ended 31 December, Zip reported a 141% increase in total transaction volume (TTV) to $2.32 billion and a 130% jump in revenue to $160 million.
This strong half was underpinned by another significant lift in active customers. At the end of December, Zip had a total of 5.7 million active customers globally, which was up 217% over the prior corresponding period.
Morgans was pleased with the company’s performance. So much so, it retained its add rating and lifted its price target to $12.10.
Where to invest $1,000 right now
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- What does the Zip (ASX:Z1P) share price have in store for 2021?
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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 ZIPCOLTD FPO. The Motley Fool Australia has recommended ResMed Inc. 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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