These growth shares are buys according to analysts…
The post 2 rapidly growing ASX shares rated as buys appeared first on The Motley Fool Australia. –
If you have room for a growth share or two in your portfolio, you might want to consider the shares listed below.
Here’s what you need to know about them:
Breville Group Ltd (ASX: BRG)
The first ASX growth share to look at is Breville. The appliance manufacturer has been growing at a solid rate in recent years thanks to strong demand and its international expansion.
This positive form continued in FY 2021, with Breville delivering one of the stronger full year results this month. For example, for the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. The latter was ahead of its upgraded guidance.
This result was supported by favourable tailwinds brought about by COVID-19 such as more cooking and working at home, which underpinned an increase in demand for whitegoods such as cooking equipment and coffee machines.
UBS was pleased with its result and in response retained its buy rating and $35.70 price target. It likes the company due to its attractive long term growth potential.
PointsBet Holdings Ltd (ASX: PBH)
Another ASX growth share to look at is PointsBet. It is a leading sports betting company with operations in both the ANZ and US markets.
It recently released its fourth quarter update and revealed that it achieved full year turnover of $3,781.4 million in FY 2021. This was up an impressive 228% on FY 2020’s turnover.
Management advised that this was driven by a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.
Goldman Sachs is very positive on the company and has a buy rating and $14.90 price target on its shares.
Its analysts note that PointsBet has a strong position in the US and a huge market opportunity ahead of it. It expects the US sports betting market to grow at a compound annual growth rate of 40% out to 2033. It estimates that it will be worth US$39 billion a year at that point.
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Motley Fool contributor 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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.