Altium Limited (ASX:ALU) and this ASX growth share could be top options for investors in 2021…
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Are you looking for a growth share or two to buy in 2021? Listed below are two top growth shares to look at.
Both have been growing strongly in recent years and have been tipped to continue this positive form in the 2020s. Here’s why they are highly rated:
Altium Limited (ASX: ALU)
Altium is a leading printed circuit board (PCB) design software provider. Its software is used by countless companies around the world to design the complex circuit boards that you’ll find inside almost all electronic devices.
The good news for Altium is that due to the artificial intelligence and internet of things booms, there has been a proliferation of electronic devices over the last decade. This rapid growth is expected to continue over the next decade, which should underpin growing demand for its award-winning software.
Management is confident in its growth trajectory and is targeting revenue of US$500 million by 2025-26. This will be a 150% increase on FY 2020’s revenue.
Analysts at Morgan Stanley are confident on its future. They have an overweight rating and $40.00 price target on the company’s shares.
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. Its software streamlines processes such as employee administration, recruitment, remuneration, and payroll through a single a unified platform.
At present the company is operating in both the ANZ and UK markets. In respect to the latter, the company has just bolstered its position in this $6.8 billion market with the acquisitions UK-based Breathe and Webexpenses. Importantly, this also provides it with plenty of cross sell opportunities for its existing services.
A recent note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on the company’s shares to $9.70.
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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 and Elmo Software. The Motley Fool Australia has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.