Altium Limited (ASX:ALU) and these ASX shares are targeting huge growth over the coming decade. Will they deliver on it?
The post 3 ASX shares targeting huge growth in the 2020s appeared first on Motley Fool Australia. –
While most companies on the Australian share market have resisted giving guidance in FY 2021 because of the uncertainty caused by the pandemic, a number have reaffirmed their longer term aspirational targets.
Three ASX shares which have bold growth plans over the next five years or so are listed below. Here’s what they are trying to achieve in the 2020s:
Altium Limited (ASX: ALU)
Altium is a leading electronic design software company best-known for its eponymous Altium Designer product. Demand for its software has been increasing over the last few years thanks to the rapidly growing Internet of Things and artificial intelligence markets. Pleasingly, management appears confident in its growth trajectory and is aiming to grow its revenue to US$500 million by 2025-2026. This will be an increase of over 150% from the revenue of US$189 million it achieved in FY 2020.
Bubs Australia Ltd (ASX: BUB)
Another company targeting huge growth over the next five years is Bubs. It is a growing infant formula, baby food, and vitamins company. In FY 2020, the company’s revenue grew by 32% to $62 million. This was driven largely by a 58% increase in Bubs infant formula sales to $30 million. Management is now aiming to grow its revenue to $400 million by 2025, with a gross margin floor of 40%. FY 2021 has started slowly because of the pandemic, though. This means Bubs has a uphill struggle to achieve its goals.
Finally, another company intent on growing its sales materially in the 2020s is SEEK. In FY 2020, the job listings giant reported revenue of $1,577.4 million. It is now aiming to increase this to $5 billion later this decade. This growth is expected to be driven by its dominant position in the ANZ market, its growing China-based Zhaopin business, and its investments in growth opportunities.
Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- Rising jobs and house loans place these ASX shares in focus
- Why the SEEK (ASX:SEK) share price rebounded after being 8% down
- Westpac (ASX:WBC) reports FY20 result, ASX 200 up 0.4% today
- Why 5G Networks, Cedar Woods, SEEK, & Tyro shares tumbled lower today
- SEEK (ASX:SEK) share price drops 5% after responding to Blue Orca short seller attack
James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.