With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.
To help narrow things down, I have picked out two ASX growth shares that could be top options for investors today. Here’s what you need to know about them:
Megaport Ltd (ASX: MP1)
The first ASX growth share to look at is Megaport. It is a leading provider of elastic interconnection services globally. The company utilises software defined networking (SDN) to allow customers to rapidly connect their network to other services across the Megaport Network.
This means that services can be directly controlled by customers via mobile devices, their computer, or its open API.
The shift to the cloud has led to increasing demand for Megaport’s services. As a result, it now connects more than 2,050 customers in over 700 enabled data centres globally. This led to Megaport reporting Monthly Recurring Revenue (MRR) of $6.3 million at the end of December. This was up $1.7 million or 37% year on year.
Goldman Sachs is confident in its growth outlook. The broker currently has a buy rating and $15.55 price target on its shares.
NEXTDC Ltd (ASX: NXT)
Another ASX growth share to consider is NEXTDC. Like Megaport, it appears perfectly positioned to benefit from the cloud computing boom.
This is because NEXTDC is one of the region’s leading data centre-as-a-service providers with a total of 11 world class centres in key locations across Australia. From these facilities, NEXTDC provides colocation services to local and international organisations.
But it isn’t settling for that. The company has recently opened up offices in Singapore and Tokyo with a view of expanding into these markets. If this expansion proves to be a success, it would give NEXTDC a significant growth runway.
Goldman Sachs is also positive on NEXTDC. Earlier this month it retained its buy rating, added it to its conviction list, and lifted its price target to $15.00. The broker believes NEXTDC is well-positioned for growth over the medium term.
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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