Insights

2 fantastic ASX shares with long runways for growth

Afterpay Ltd (ASX:APT) and this ASX share have long runways for growth. Here’s why they could be great long term options…
The post 2 fantastic ASX shares with long runways for growth appeared first on The Motley Fool Australia. –

A man drawing an arrow on a growth chart, indicating a surging share price

When looking for growth shares to buy, I like to focus on companies that have long runways for growth. This is because they have the potential to generate strong long term returns for investors, allowing them to benefit from the power of compounding.

Two ASX growth shares which have been tipped for big things in the future are listed below. Here’s why they are highly rated:

Afterpay Ltd (ASX: APT)

The first ASX growth share to look at is Afterpay. It is a payments company that has grown at an explosive rate over the last few years thanks to the growing popularity of the buy now pay later payment method globally.

Positively, Afterpay is planning to increase its product portfolio very shortly with the launch of transaction accounts through the Afterpay Money app. After which, analysts at Bell Potter don’t expect the company to stop there. They believe that Afterpay could expand into other products such as mortgages in the future.

In addition to this, last week the company’s European acquisition completed. This means that it can now start its expansion onto mainland Europe. If this and its probable expansion into Asia are a success, this could provide it with a very long runway for growth over the next decade.

It’s no wonder then that Bell Potter is so positive on the company and its growth prospects. According to a recent note, the broker has a buy rating and $168.50 price target on Afterpay’s shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay provides the faith sector with a donor management system, including donor tools, finance tools and a custom community app, and a church management system (ChMS).

Its increasingly popular solutions simplify engagement, payments and administration, enabling users to increase participation and build stronger relationships with their communities.

Last year the company acquired Church Community Builder. It provides a platform that churches use to connect and communicate with their community members, record member service history, track online giving and perform a range of administrative functions.

Since then, the company has developed and launched its all-in-one engagement solution, ChurchStaq. ChurchStaq combines Pushpay’s giving and engagement solution with Church Community Builder’s ChMS functionality. It notes that this results in a holistic software solution that equips customers of all sizes with the technology they need to seamlessly connect across different ministry touch points.

This appears to have put Pushpay in a strong position to dominate its market and deliver on its goal of growing its US market share to 50%, which is worth US$1 billion in revenue per annum at present. This will be a significant lift on FY 2020’s revenue of US$129.8 million.

Analysts at Goldman Sachs are positive on the company. They have a conviction buy rating and $2.59 price target on its shares.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 fantastic ASX shares with long runways for growth appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!