Here are 2 of the best ASX growth shares to buy: Morgans

Looking for an ASX growth share or two to buy? Two that analysts at Morgans rate as buys and have on their best ideas listed are listed below.

Here’s what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

Morgans has this gaming technology company on its best ideas list.

The broker highlights that the company has been growing strongly in recent years and expects this trend to continue. Particularly given how it continues to win market share across all product segments.

In light of this, the broker believes that recent share price weakness has created a buying opportunity for investors. It commented:

The underperformance [of its shares] means, however, that ALL’s 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

Morgans has an add rating and $43.00 price target on the company’s shares.

Pro Medicus Limited (ASX: PME)

Another ASX growth share that Morgans has on its best ideas list is Pro Medicus.

It is a health imaging technology company behind the industry-leading Visage 7 Enterprise Imaging platform.

Morgans is a fan of the company due to its strong growth potential thanks to the quality of its offering and industry tailwinds. In fact, it expects this to underpin a two-year earnings per share compound annual growth rate of 23.8%. The broker commented:

Pro Medicus is a leading healthcare end-to-end imaging software and service provider, servicing a number of the world’s largest imaging centres and health care groups. We like the space, with high single digit organic volume growth and long-term industry tailwinds. Profitability in the business is backed up by long-term contracted revenues with some of the world’s largest hospital systems and growing pipeline of tenders which we view will provide continued growth over the medium to long term.

Morgans has an add rating and $58.18 price target on the company’s shares.

The post Here are 2 of the best ASX growth shares to buy: Morgans appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Has this overlooked ASX 200 share really gained more than 1,200% in just 10 years?
• US$10 billion was just wiped from the value of Atlassian. How are ASX 200 tech shares responding?
• Leading fund manager names the 3 ASX stocks that drove its returns higher in October
• Two 5-bagger health tech ASX shares ready to rocket again: expert
• Top brokers name 3 ASX 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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/O2MmADK