2 ASX growth shares to buy for big returns in 2021

a2 Milk Company Ltd (ASX:A2M) and this ASX growth share could be the ones to buy for big returns in 2021…
The post 2 ASX growth shares to buy for big returns in 2021 appeared first on The Motley Fool Australia. –

A man drawing an arrow on a growth chart, indicating a surging share price

If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow very strongly in the coming years.

Two top growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

a2 Milk Company Ltd (ASX: A2M)

This infant formula and fresh milk company’s shares have been out of form this year. This share price weakness has been driven largely by concerns that its near term performance could be impacted by the pulling forward of sales into FY 2020 during the pandemic and weakness in the daigou channel. While this certainly appears to be the case, management remains confident that this is just a short term headwind.

One broker that agrees is Morgans. It believes its challenges are transitory and its share price weakness is a buying opportunity. The broker has an add rating and $17.28 price target on a2 Milk shares. Based on the latest a2 Milk share price, this would mean a potential return of 31% over the next 12 months.

Nearmap Ltd (ASX: NEA)

Nearmap is an aerial imagery technology and location data company. Thanks to geographic expansions, new growth initiatives, and the quality of its offering, particularly its new AI product, management believes the company is well-positioned for growth in the future. So much so, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley appears happy with these targets and is recommending Nearmap as a buy. Last month the broker retained its overweight rating and $3.10 price target on its shares. Based on the current Nearmap share price, this implies potential upside of over 41% over the next 12 months.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Nearmap 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 to buy for big returns in 2021 appeared first on The Motley Fool Australia.

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!