Airtasker is one of the ASX growth shares that analysts like right now.
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There are some leading ASX growth shares that analysts currently rate as a buy.
These ideas are companies that are seeing their operations grow at an impressive double (or even triple) digit rate.
Not every company that’s growing is a worthwhile investment at today’s price, but these companies could be too good to ignore:
Airtasker Ltd (ASX: ART)
Airtasker is an online marketplace business that connects people that want to work with people who need work doing.
The business is currently rated as a buy by Morgans, with a price target of $1.27. That’s almost 30% higher than where it is today.
This ASX growth has a combination of a very high gross profit margin (more than 93% in FY21), rapid growth – revenue increased 38% in FY21 and positive operating cashflow ($5.5 million in FY21). Those three attributes means the business is scaling quickly, very profitably and it’s adding to the company’s cashflow positively.
Airtasker is aiming to scale new Airtasker marketplaces across the world and replicate the growth it has already achieved in Australia. The UK and USA are the next two target markets it’s expanding in.
The company also recently told investors at its AGM that it’s seeing “positive momentum” in its average task value and management expect this to continue into the medium-term and longer-term. Airtasker is also becoming more trusted by Australians – more people are turning to Airtasker for increasingly complex and therefore higher value tasks.
The ASX growth share is investing in marketing, creating new service categories and developing its re-booking model. The re-booking model is showing some “exciting results”.
Internationally, it’s targeting an annualised run rate of gross marketplace volume (GMV) of between $8 million to $10 million.
Temple & Webster Group Ltd (ASX: TPW)
The furniture and homewares ASX growth share is another business that is liked by analysts. Morgan Stanley rates it as a buy, with a price target of $16 – that’s around 50% higher than it is today.
In FY21, Temple & Webster achieved revenue growth of 85% to $326.3 million. The broker thinks that the business may be able to achieve $1 billion of revenue in four to five years thanks to its good and growing market share, as well as the tailwind of the shift to e-commerce by customers.
The ASX growth share is still seeing its revenue increase at a fast rate. For the period from 1 July 2021 to 27 August 2021, revenue had increased by another 49%.
Management said that the business is experiencing several strong tailwinds, including the ongoing adoption of online shopping due to structural and demographic shifts (and an acceleration of this due to COVID-19).
Temple & Webster is planning to drive down its profit margins for the medium-term by investing into growth areas of the business to grow its online market position so that the ASX growth share can become the largest retailer in Australia for furniture and homewares in Australia.
Not only is Temple & Webster growing its headline revenue and customer numbers, but its revenue per active customer is increasing – showing that customers are buying more often and spending more when they do. The revenue per active customer in FY21 rose 12% year on year.
Should you invest $1,000 in Temple & Webster right now?
Before you consider Temple & Webster, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Temple & Webster wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Motley Fool contributor Tristan Harrison 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 Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.