Zip Co Ltd (ASX: Z1P) and this ASX growth share could be great options for investors. Here’s why they have been rated as buys…
The post Why Zip (ASX:Z1P) and this ASX growth share could be buys appeared first on The Motley Fool Australia. –
If you’re wanting to boost your portfolio with a couple of growth shares, then you may want to consider the ones listed below.
Here’s why these ASX growth shares have been rated as buys:
Nearmap Ltd (ASX: NEA)
The first ASX growth share to look at is Nearmap. It is a leading aerial imagery technology and location data company with operations in the ANZ and North American markets.
Nearmap gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means that users can inspect, measure, or analyse locations from anywhere, which turns high-definition aerial map data into a powerful project management tool.
Management believes it has a large addressable market to grow into and is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term.
One broker that appears confident in its growth trajectory is Goldman Sachs. It currently has a buy rating and $2.95 price target on Nearmap’s shares. This compares to the latest Nearmap share price of $2.18.
Zip Co Ltd (ASX: Z1P)
Although 2021 has been an amazing year for the Zip share price, the last seven weeks have been anything but that. After peaking at $14.53 in the middle of February, the Zip share price is now trading 42% lower at $8.42. And that’s even after a stunning 9% gain on Tuesday following a rebound in the tech sector.
One broker that appears to see this as a buying opportunity for investors is Morgans. Its analysts currently have an add rating and $12.10 price target on the company’s shares. Based on the latest Zip share price, this implies potential upside of almost 44% over the next 12 months.
It appears to have been pleased with its first half performance, which saw Zip report a 141% increase in total transaction volume to $2.32 billion and a 130% jump in revenue to $160 million. This was driven by a 217% increase in global active customers to 5.7 million, thanks largely to its rapidly growing US-based QuadPay business.
Where to invest $1,000 right now
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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 February 15th 2021
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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 Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.