These growth shares are highly rated by analysts…
The post 2 buy-rated growth shares for ASX investors in August appeared first on The Motley Fool Australia. –
If you’re wanting to add some growth shares to your portfolio in August, then you may want to check out the two listed below.
Here’s why analysts are tipping these ASX shares as buys:
IDP Education Ltd (ASX: IEL)
IDP Education could be a growth share to look closely at. It is a provider of international student placement and English language testing services.
While trading conditions have been very tough because of the pandemic, the company appears well-positioned for growth once trading conditions return to normal. Particularly given its recent acquisition of the British Council’s Indian International English Language Testing System for A$240 million.
This transaction is expected to be approximately 13% earnings per share accretive (pre-synergies) on a pro forma calendar year 2019 basis.
Goldman Sachs is very positive on the company and believes its growth will accelerate post-pandemic. It also sees opportunities for the company to boost its growth with further earnings accretive acquisitions in the future.
The broker currently has a buy rating and $35.00 price target on its shares. This compares to the latest IDP Education share price of $28.21.
Another ASX growth share to consider is Kogan. It is one of Australia’s leading ecommerce companies. It was growing its earnings at a very strong rate for a good number of years until FY 2021.
The company recently released its full year trading update and revealed a 52.5% increase in gross sales to $1,177.7 million but a 23.1% lift in adjusted EBITDA to $61.1 million. While this is very strong compared to what some companies are delivering this year, it fell well short of what the market had been expecting.
This was due to some significant inventory issues after management failed to predict a sharp slowdown in sales after consumers went back to bricks and mortar retail stores. Management has acknowledged this misstep and is working through its inventory. And while this may mean slender margins in the immediate term, analysts at Credit Suisse expect the company to bounce back.
In response to its update, the broker put an outperform rating and $15.31 price target on its shares. This compares to the latest Kogan share price of $10.39.
The post 2 buy-rated growth shares for ASX investors in August appeared first on The Motley Fool Australia.
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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 Idp Education Pty Ltd and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.