2 quality ASX growth shares with heaps of potential

Afterpay Ltd (ASX:APT) and this ASX growth share have heaps of potential. Here’s what you need to know about them…
The post 2 quality ASX growth shares with heaps of potential appeared first on The Motley Fool Australia. –

If you’re looking to invest in a growth share or two, then you might want to consider the ones listed below.

Here’s why these ASX shares could be top options for growth investors:

Afterpay Ltd (ASX: APT)

The first option to look at is Afterpay. This buy now pay later (BNPL) focused payments company has been growing at an explosive rate over the last few years.

This has been driven largely by the successful export of its platform into the United States and Europe. The good news is that the payment method continues to resonate with consumers and merchants, which is underpinning rapid customer growth across the globe.

Pleasingly, with the company expanding onto Mainland Europe and weighing up its options in the Asia market, Afterpay still has a significant runway for growth in the BNPL market over the 2020s. This should be complemented by its expansion into other products such as bank accounts and cash flow tools.

One that is confident in its growth trajectory is Morgan Stanley. Earlier this month the broker put an overweight rating and $149.00 price target on its shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX growth share to look at is Pushpay. It is leading donor management and community engagement platform provider for the faith sector.

As with Afterpay, Pushpay has been growing at a quick rate in recent years. This has been driven by the shift to a cashless society, the digitisation of the church, and its industry-leading platform.

Earlier this month the company released its full year results for FY 2021. Pushpay reported a 40% increase in operating revenue to US$179.1 million and a 133% jump in EBITDAF to US$58.9 million. The latter was at the high end of its guidance for EBITDAF of between US$56 million and US$60 million, which was upgraded three times during the course of the year.

And while the company’s growth will moderate in FY 2022, it is still targeting growth that other companies would be envious of. Pushpay advised that it expects its EBITDAF to increase 12% to 20.5% year on year. However, as we have seen previously, Pushpay has a tendency to under promise and over deliver. There’s every chance this guidance will be upgraded as the year progresses.

Looking further ahead, Pushpay appears well-placed for growth over the coming years thanks to industry tailwinds and also its expansion into new markets. One of those is that lucrative Catholic church market, which management is entering this year. It is then aiming to win 25% of the Catholic church management system and donor management system market over the next five years.

Ord Minnett currently has a $1.84 price target on the company’s shares.

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

RBA delivers win for BNPL providers like Sezzle (ASX:SZL)

This BNPL just saw stronger UK growth than Afterpay (ASX:APT)

5 things to watch on the ASX 200 on Friday

Why did ASX tech shares like Afterpay (ASX:APT) have such a good day?

ASX 200 up 0.2%: CBA share price cracks $100, ALS result impresses

The post 2 quality ASX growth shares with heaps of potential 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!