These companies are growing at a rapid rate…
The post These buy-rated ASX shares are growing rapidly appeared first on The Motley Fool Australia. –
The Australian share market is home to a good number of companies that are growing at a quick rate.
Two ASX shares that are growing particularly quickly are listed below. Here’s why they have been rated as buys recently and could be top options for growth investors:
Nitro Software Ltd (ASX: NTO)
The first ASX growth share to look at is Nitro Software. It provides document productivity software, including PDF productivity, eSigning workflow, and analytics solutions.
The key product in its portfolio is the Nitro Productivity Suite. This PDF productivity solution is highly scalable, serving large multinational enterprises and government agencies, as well as small businesses and individual users. It has been growing in popularity in recent years and is underpinning significant recurring revenue growth.
For example, in FY 2020 the company reported a 64% increase in annualised recurring revenue (ARR) to $27.7 million. Looking ahead, more strong growth is expected in FY 2021. Nitro has provided guidance for ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.
Morgan Stanley has an overweight rating and $3.70 price target on the company’s shares. It sees opportunities for Nitro to upsell and cross sell in the enterprise channel.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.
As with Nitro, Temple & Webster has been growing very strongly in recent years. This has been driven by its leadership position and the ongoing shift to online shopping. Positively, online furniture shopping is still only really getting started in Australia. Particularly in comparison to other Western markets, which have significantly greater online penetration rates.
Management is now preparing for this shift to accelerate and is investing heavily to cement its position as the market leader.
Credit Suisse currently has an outperform rating and $12.54 price target on its shares. It sees scope for the furniture industry to reach ~13% in online penetration by FY 2025.
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
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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Nitro Software Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.