Analysts say these top ASX growth shares are buys

The Australian share market is home to plenty of growth shares. But which ones would be good options for investors right now?

Two that have been rated as buys recently are listed below. Here’s what you need to know about them:

Cochlear Limited (ASX: COH)

The first ASX growth share for investors to look at is hearing solutions company Cochlear.

Over the last four decades, the company has carved out a leadership person in the industry thanks to its world class portfolio of implantable hearing devices.

Thanks to this strong position in a market benefiting from ageing population and with significant barriers to entry, it has been tipped to continue its growth long into the future.

For example, Morgans is very positive on the company. It commented:

Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.

Morgans has an add rating and $244.50 price target on Cochlear’s shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that could be in the buy zone is TechnologyOne. It is an enterprise software provider that has also been growing at a solid rate for decades.

The good news is that the company’s growth isn’t about to stop anytime soon. Thanks to its expansion into the larger UK market and its shift to a software-as-a-service (SaaS) model, TechnologyOne has been tipped to grow strongly over the coming years.

For example, the team at Goldman Sachs are very bullish on the company’s prospects. It explained:

Defensive end markets (public sector and education) with IT spending that are relatively resilient to recessions (see our initiation here). Contractual CPI pricing pass-through, high recurring revenue, minimal churn (<1%), high margins and net cash are attractive attributes in a slowing economy. In addition, TNE’s recent result highlight continued momentum towards the +A$500mn FY26 ARR target, providing valuable earnings growth visibility over coming years, in our view.

Goldman Sachs has a buy rating and $13.30 price target on its shares.

The post Analysts say these top ASX growth shares are buys appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares to buy in a sector suddenly soaring this month: expert
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• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• 4 ‘quality’ ASX shares to buy in scary times: expert
• Why experts rate these ASX growth shares as buys

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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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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