Analysts name the ASX growth shares to buy

Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Altium Limited (ASX: ALU)

The first ASX growth share for investors to look at is Altium.

Altium is a software company that focuses on electronics design systems for 3D PCB design and embedded system development.

Its products are found everywhere from world leading electronic design teams to the grassroots electronic design community. The former includes the likes of BAE Systems, Dell, Microsoft, NASA, and Tesla.

The good news is that despite being a leader in the industry, management isn’t resting on its laurels and is targeting strong subscription and revenue growth in the coming years. In respect to the latter, Altium is aiming to achieve US$500 million in revenue by 2026. This will be more than double FY 2022’s revenue of US$220.8 million.

Jefferies is a fan of the company. It currently has a buy rating and $38.13 price target on its shares.

Xero Limited (ASX: XRO)

Another ASX growth that has been named as a buy is Xero.

Xero is a global small business platform which provides its 3.3 million global subscribers with a core accounting solution, as well as payroll, workforce management, expenses and projects solutions. In addition, Xero provides access to financial services, an ecosystem of more than 1,000 connected apps, and more than 300 connections to banks and other financial institutions.

The good news for investors is that Goldman Sachs highlights that even with 3.3 million subscribers, Xero still only scratching at the surface of its global market opportunity of ~45 million+ subscribers. It is partly because of this “compelling global growth story” that Xero is the broker’s “preferred large cap technology name in ANZ.”

Last week, Goldman Sachs reiterated its buy rating on Xero’s shares with a $112.00 price target.

The post Analysts name the ASX growth shares to buy appeared first on The Motley Fool Australia.

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More reading

• US$10 billion was just wiped from the value of Atlassian. How are ASX 200 tech shares responding?
• What’s the outlook for the Xero share price in November
• How are ASX 200 tech shares faring after the overnight NASDAQ plunge?
• Top ASX shares to buy in November 2022
• Analysts name 2 ASX growth shares to buy next week

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 Altium and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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