Insights

2 ASX growth shares this leading broker loves

Here are a couple of buy-rated growth shares…
The post 2 ASX growth shares this leading broker loves appeared first on The Motley Fool Australia. –

Investors looking for growth options might want to look at the shares listed below.

Here’s why a leading broker is tipping them as buys right now:

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is a leading Australian-based online platform and software as a service (SaaS) provider. The company’s platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals.

The company also offers tradies its Call of Service job management software, which improves their productivity by streamlining their workflow and taking away the stress of doing admin.

Last week, analysts at Goldman Sachs retained their buy rating and lifted their price target to $3.40. The broker has been impressed with its form in recent months, which is supporting its bullish sentiment.

It commented: “Momentum is being maintained on the consumer side of the marketplace with monthly website visits up +21% YoY. The combined effect of tradie and consumer growth is an increase in the number of jobs posted per tradie rising over the forecast period from c.36 in FY20 to c.53 by FY23E. Growth in this metric is a key indicator of marketplace balance and demonstrates the value tradies are deriving from the platform. This is a key driver of our forecast 11% CAGR in ARPU.”

Xero Limited (ASX: XRO)

Another ASX growth share to look at is Xero. It is a leading cloud-based full-service business and accounting solution provider which has been growing at a rapid rate in recent years.

This continued in FY 2021 despite the pandemic’s impact on small businesses across the world. For example, in May the company released its full year results and revealed an 18% increase in revenue to NZ$848.8 million.

This was driven by a 20% increase in subscribers to 2.74 million. This comprises ANZ subscribers of 1.56 million and international subscribers of 1.18 million. And while this may be a large number, it is only a fraction of a cloud accounting subscriber total addressable market estimated at 45 million. This gives it a long runway for growth in the future.

Goldman Sachs is also very positive on Xero’s future. Thanks to its international expansion, the ongoing shift to the cloud, and the monetisation of its app ecosystem, it believes the company could have a multi-decade runway for growth. The broker has a buy rating and $153.00 price target on its shares.

The post 2 ASX growth shares this leading broker loves appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

3 excellent ASX growth shares rated as buys

5 things to watch on the ASX 200 on Tuesday

ASX 200 Weekly Wrap: ASX makes it 5 out of 5

2 growing ASX tech shares this broker rates very highly

5 things to watch on the ASX 200 on Friday

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. owns shares of and has recommended Hipages Group Holdings Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!