2 outstanding ASX growth shares rated highly

Looking for growth? These ASX shares could have it in spades…
The post 2 outstanding ASX growth shares rated highly appeared first on The Motley Fool Australia. –

The Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here’s why analysts think investors should be buying their shares:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is Australia’s leading online beauty retailer and has been growing strongly in FY 2021 thanks to the shift to online shopping.

And while the company’s growth is likely to moderate significantly in FY 2022 when trading conditions return to normal, it looks well-placed for growth in the years that follow. Particularly given the aforementioned shift online, which is still in its infancy for the beauty and personal care (BPC) market.

Management notes that the BPC market in Australia is worth $11.2 billion and is expected to grow at a 26% CAGR to 2024. Furthermore, online sales currently comprise 11.4% of the BPC market, which is a notably lower rate of penetration than in developed markets like the US, UK and China.

UBS is a fan of the company. Its analysts currently have a buy rating and $5.40 price target on the company’s shares. The broker believes Adore Beauty’s sales could double between FY 2021 and FY 2025.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services, and the co-owner of the International English Language Testing System (IELTS). This is the English test that is trusted by more governments, universities and organisations than any other. It also operates English language teaching schools in South East Asia.

While demand for its services has unsurprisingly being hit hard by COVID-19, trading conditions have been improving. For example, at the end of the first half, the company reported that testing volumes were broadly in line with those experienced in the final month of 2019 before the pandemic. And although recent outbreaks since then may have stifled its recovery, it looks well-placed to continue it once things are under control again.

Morgan Stanley remains very positive on the company. It recently retained its outperform rating and $30.00 price target on its shares.

The post 2 outstanding ASX growth shares rated highly appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

3 highly rated ASX growth shares analysts love

2 beaten down ASX tech shares that could be in the buy zone

2 top small cap ASX shares that might be buys

2 ASX mid cap growth shares rated highly

The Dug Technology (ASX:DUG) share price is climbing today. Here’s why

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 has recommended Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. 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.

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!