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2 ASX growth shares that could be strong buys

Altium Limited (ASX:ALU) and this ASX growth share could be top options for investors looking to add growth shares to their portfolio…
The post 2 ASX growth shares that could be strong buys appeared first on The Motley Fool Australia. –

Two fists connect in a surge of power, indicating strong share price growth or new partnerships for ASC mining and resource companies

Do you want to add a growth share or two to your portfolio? If you do, then you might want to look at the ones listed below.

Here’s why these could be growth shares to buy right now:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is electronic design software provider Altium.

It could be a growth share to buy due to its long term plans to dominate the market it operates in. It aims to achieve this with its Altium Designer software and cloud-based Altium 365 platform. Management believes these platforms are head and shoulders above the competition. A testament to this is the quality of its users. These include giants such as Boeing, Microsoft, NASA, and Tesla, 

Positively, this is a great market to dominate. Thanks to the proliferation of electronic devices because of the Internet of Things and artificial intelligence markets, the electronic design software market is expected to grow materially over the next decade.

Credit Suisse is positive on the company’s outlook. It has an outperform rating and $35.00 price target on Altium’s shares.

Kogan.com Ltd (ASX: KGN)

Another growth share to consider is Kogan. It is one of Australia’s leading ecommerce companies, offering everything from electronics, furniture, and even vehicles with its Kogan Cars brand.

While Kogan has been growing strongly over the last few years, its growth went up a level during the pandemic. This was driven by the closure of retail stores, which sent consumers online in their droves, many for the first time.

This ultimately underpinned a surge in customer numbers and an even greater jump in sales and earnings. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million.

While its growth may moderate now the worst of the pandemic is behind us, its long term outlook remains incredibly favourably. Especially given its strong market position and recent acquisitions of Matt Blatt and Mighty Ape.

Credit Suisse is also a fan of Kogan. The broker currently has an outperform rating and $20.85 price target on its shares.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX growth shares that could be strong buys appeared first on The Motley Fool Australia.

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