The Australian share market is home to a good number of shares that are growing at a quicker than average rate.
Two that have been tipped to continue doing so in FY 2023 are listed below. Here’s why analysts think they are top options for growth investors:
Allkem Ltd (ASX: AKE)
There’s no doubt that the lithium industry is running hot at the moment.
And while the valuations of some explorers and developers are questionable, the Allkem share price is seen as very attractive by analysts at Macquarie.
This is because Allkem is already producing significant quantities of the battery making ingredient and benefiting from the insatiable demand and high prices. Whereas the many explorers popping up on the ASX boards have no idea what the price will be when they commence production.
It is also worth noting that management is aiming to grow Allkem’s production 3x by 2026. This should ensure that it is well-placed to take advantage of the high lithium prices before they normalise again when supply improves.
In light of this, Macquarie has put an outperform rating and $21.00 price target on its shares. This compares to the latest Allkem share price of $14.36.
Readytech Holdings Ltd (ASX: RDY)
Another ASX share that has been tipped to continue its strong growth is Readytech.
It is an enterprise software provider to several market verticals such as higher education and local government.
Goldman Sachs highlights that the company operates in market niches that are under-served by both large and small enterprise software competitors.
And combined with its high levels of recurring revenue and ultra low churn levels, Goldman expects Readytech to “continue to grow mid-teens organically while making accretive acquisitions.”
As a result of this positive outlook, the broker currently has a buy rating and $4.60 price target on its shares. This compares favourably to the latest Readytech share price of $2.80.
The post Why brokers say these ASX growth shares are buys appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. 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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