2 exciting ASX growth shares to buy this month

ELMO Software Ltd (ASX:ELO) and this ASX growth share could be ones to buy in February. Here’s why they are rated highly…
The post 2 exciting ASX growth shares to buy this month appeared first on The Motley Fool Australia. –

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Are you looking to add a growth share or two to your portfolio? Then take a look at the two ASX shares listed below.

Here’s why they could be growth shares to buy right now:

ELMO Software Ltd (ASX: ELO)

The first ASX growth share to look at is ELMO. It is a cloud-based human resources and payroll software company that provides businesses with a unified platform to streamline a wide range of processes.

ELMO has been a strong performer during the pandemic and looks well-placed to continue this trend over the next decade. This is thanks to strong demand for its platform and recent acquisitions. The latter has bolstered its offering and expanded its addressable market.

Earlier this week Morgan Stanley put an overweight rating and $9.70 price target on its shares. This was in response to the release of its half year results on Tuesday. Those results revealed a 42.8% increase in Annualised Recurring Revenue (ARR) to a record $74.2 million.

Nearmap Ltd (ASX: NEA)

Another ASX growth share to look at is Nearmap. It is a leading aerial imagery technology and location data company. Its platform provides businesses in the ANZ and North American markets with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

Nearmap appears well-placed for growth thanks to its recent capital raising, new growth initiatives, geographic expansion, and the launch of its latest AI product. So much so, management is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Analysts at Goldman Sachs are positive on the company and were pleased with its half year results this week. In response to them, the broker put a buy rating and $2.95 price target on Nearmap’s shares. 

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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 Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Elmo Software and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 exciting ASX growth shares to buy this month appeared first on The Motley Fool Australia.

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