2 excellent ASX growth shares to buy

Here are a couple of top ASX growth shares to buy…
The post 2 excellent ASX growth shares to buy appeared first on The Motley Fool Australia. –

The Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here’s why analysts think investors should be buying these shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first growth share to look at is this pizza chain operator. Domino’s has been growing strongly for over a decade thanks to its store expansion (both at home at overseas), its investment in technology, and the ongoing popularity of its offering.

In respect to its expansion, at the end of FY 2021, Domino’s was operating 2,949 stores across its sprawling network. While this is large, management sees scope to more than double this to 6,650 stores by FY 2023. And that’s just in existing markets. The company is also on the lookout for acquisitions, which could see it enter new markets in the future, giving it a larger opportunity.

And while a recent trading update revealed that its performance has been a touch volatile in FY 2022, the team at Goldman Sachs remains positive. Its analysts recently reiterated their buy rating and $147.00 price target on the company’s shares.

ELMO Software Ltd (ASX: ELO)

Another growth share to look at is ELMO. It is a cloud-based human resources and payroll software company with operations in the ANZ and UK markets.

ELMO has been growing at a consistently strong rate over the last few years despite whatever the economy throws at it. For example, in FY 2021 the company reported annualised recurring revenue (ARR) growth of 52.1% to $83.8 million.

It then followed this up during the first quarter of FY 2022 with a 61% increase in ARR over the prior corresponding period to $88.5 million. This growth is being driven by the benefits of acquisitions but also strong organic growth and puts it on course to achieve its full year guidance of ARR of $105 million to $111 million.

Positively, this is still only a fraction of its significant market opportunity, which management estimates to be worth $12.8 billion per year.

Morgan Stanley is a fan of ELMO. It currently has an overweight rating and $7.80 price target on its shares.

The post 2 excellent ASX growth shares to buy appeared first on The Motley Fool Australia.

Should you invest $1,000 in Domino’s right now?

Before you consider Domino’s, 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 Domino’s wasn’t one of them.

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*Returns as of August 16th 2021

More reading

Why is the ELMO (ASX:ELO) share price rising on Thursday?

Down 22% in 2 months, is the Domino’s (ASX:DMP) share price a very tasty buy?

Domino’s (ASX:DMP) biggest shareholder dropped $600 million last Thursday. Here’s why he’s not worried

2 quality ASX tech shares ripe for the picking

These were the worst performing ASX 200 shares last week

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 Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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