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2 ASX shares with strong long term growth potential

Nanosonics Ltd (ASX:NAN) and this ASX growth share have buy ratings on them. Here’s why they could be good additions to your portfolio…
The post 2 ASX shares with strong long term growth potential appeared first on The Motley Fool Australia. –

If you’re looking at following in the footsteps of Warren Buffett by making buy and hold investments, then you might want to look at the shares listed below.

Both have strong market positions and long runways for growth over the next decade. Here’s what you need to know:

Nanosonics Ltd (ASX: NAN)

Nanosonics is a healthcare technology company with a focus on infection control. 

The company currently derives all of its revenue from its trophon EPR disinfection system for ultrasound probes. This technology is regarded as the best in its class and has been growing its market share in the United States and globally consistently each year over the last decade.

Chances are, if you’ve ever had an ultrasound, you’ve been protected by this technology. Management estimates that every day 80,000 patients are protected from the risk of cross contamination because the ultrasound probe has been high-level disinfected with trophon. And the good news is that despite how well it cleans probes compared to rival products, it is environmentally friendly. 

Looking to the future, the company is aiming to expand its portfolio in the coming years with the launch of new products targeting unmet needs. These are understood to have similar addressable markets, which will provide Nanosonics with a very long runway for growth if successful.

UBS currently has a buy rating and $7.00 price target on its shares

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to consider buying is Temple & Webster. It is one of Australia’s leading online retailers with a focus on furniture and homewares.

Temple & Webster has been growing at a rapid rate in recent years and appears well-placed to continue this trend in the years to come. Especially given the shift to online shopping, which is still only getting started for furniture and homewares.

Analysts at Credit Suisse are confident in the company’s future. They recently initiated coverage on Temple & Webster with an outperform rating and $12.54 price target.

The broker sees scope for online furniture sales to account for 13% of industry sales by FY 2025. And given its clear leadership position, this bodes well for its growth over the next few years.

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More reading

2 ASX shares that could be buys in June 2021

3 ASX shares growing at a rapid rate

3 reasons why the Temple & Webster (ASX:TPW) share price could be a buy
These are the 10 most shorted shares on the ASX

2 ASX shares that could be worth looking at this weekend

The post 2 ASX shares with strong long term growth potential appeared first on The Motley Fool Australia.

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