Kogan.com Ltd (ASX:KGN) and this explosive ASX growth share could be top options for investors to buy right now…
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With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy.
Two that could be worth considering are listed below. Here’s why they have been tipped as buys:
Bigtincan Holdings Ltd (ASX: BTH)
The first ASX growth share to look at is Bigtincan. This artificial intelligence-powered sales enablement automation platform provider has been growing strongly in recent years and this has continued in FY 2021.
Last week the company released its second quarter update and revealed further impressive recurring revenue growth.
Bigtincan reported annualised recurring revenue (ARR) of $48.4 million at the end of the period. This represents growth of 50% on the prior corresponding period and was driven predominantly by organic growth. Organic ARR came in at $40 million (up 42.9%) and ARR from acquisitions was $8.4 million.
In response to the update, analysts at Morgan Stanley initiated coverage on the company’s shares with an overweight rating and $1.40 price target. It believes the company is in a strong position for growth thanks to its leadership position in a growing industry.
Kogan is one of Australia’s leading ecommerce companies and the country’s answer to Amazon. It has been growing at a very strong rate in recent years and particularly in FY 2021 thanks to the acceleration of the shift to online shopping.
In fact, the company has just released its half year update, which revealed explosive sales and profit growth. For the six months ended 31 December, Kogan’s gross sales (including the Mighty Ape acquisition) increased 96% over the prior corresponding period.
And thanks to margin expansion, its gross profit grew over 120% and its earnings before interest, tax, depreciation and amortisation (EBITDA) jumped over 140%.
Analysts at Credit Suisse were pleased with its update. In response to it, the broker put an outperform rating and $21.08 price target on its shares. This compares to the current Kogan share price of $17.45. It believes Kogan is well-placed to benefit from the shift to online shopping.
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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. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.