Altium Limited (ASX:ALU) and this ASX growth share could be among the best options for growth investors right now. Here’s why…
The post 2 of the best ASX growth shares to buy now appeared first on The Motley Fool Australia. –
If you’re a growth investor, then you’re in luck. The ASX is home to a number of companies which have the potential to grow strongly over the 2020s.
Two to consider buying are listed below. Here’s why they are highly rated:
Altium Limited (ASX: ALU)
Altium is an electronic design software provider. It is the company behind the Altium Designer (and Altium 365) platform, the NEXUS design collaboration platform, and the Octopart electronic parts search engine. Altium is aiming to dominate the electronic design market and believes its new cloud-based Altium 365 platform is key to achieving this.
This certainly is a lucrative market to dominate. Thanks to the proliferation of electronic devices due to the Internet of Things and artificial intelligence markets, the electronic design market is expected to grow materially over the next decade.
Analysts at Credit Suisse are positive on the company. They have an outperform rating and $35.00 price target on the company’s shares. The Altium share price ended the week at $30.66.
This ecommerce company has been a very strong performer over the last 12 months. This is thanks to the acceleration of the shift to online shopping and its strong market position. Positively, this strong form has continued in FY 2021 despite the retail sector opening back up largely as normal.
For example, Kogan recently released its half year update and revealed explosive sales and profit growth. For the six months ended 31 December, Kogan’s gross sales, which include the Mighty Ape business, grew 96% over the prior corresponding period.
Positively, thanks to margin expansion, the company’s gross profit grew over 120% and its earnings before interest, tax, depreciation and amortisation (EBITDA) jumped over 140%.
Credit Suisse is also a fan of Kogan. It currently has an outperform rating and $21.08 price target on its shares. This compares to the latest Kogan share price of $16.76.
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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 Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.