Xero Limited (ASX: XRO) and this ASX growth share could be fantastic options for investors in January…
The post 2 of the best ASX growth shares to buy in January appeared first on The Motley Fool Australia. –
Looking for growth shares to buy in January? Then you won’t want to miss out on the ones listed below.
Both these ASX growth shares have been tipped for big things in the future:
Altium Limited (ASX: ALU)
The first growth share to look at is Altium. Inside most electronic devices you will find a printed circuit board (PCB). These circuit boards have highly complex designs and are integral to the operation of these devices. This means specialist software is required to design and manufacture them.
Altium is a leading PCB design software company which is aiming to dominate its industry this decade with its Altium Designer and cloud-based Altium 365 platforms. The latter is being seen as the main driver of growth in the future and the key to it achieving its target of 100,000 subscribers and US$500 million in revenue by FY 2026. This compares to its subscribers of 51,000 and revenue of US$189 million in FY 2020.
One broker that is confident on its prospects is Morgan Stanley. Its analysts have an overweight rating and $40.00 price target on the company’s shares.
Xero Limited (ASX: XRO)
Xero is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.
Thanks to its successful evolution into a full service small business solution over the last few years, the company has been growing its customer numbers and revenues at a rapid rate. Even during the pandemic. This has led to very strong returns for shareholders.
Pleasingly, due to the ongoing shift to cloud-based solutions, its global market opportunity, and growing app ecosystem, Xero has been tipped for more of the same in the future.
Analysts at Goldman Sachs believe Xero is well-positioned for decades of strong revenue growth. The broker has a buy rating and $157.00 price target on the company’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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.