Altium Limited (ASX:ALU) and this excellent ASX growth share have been given buy ratings. Here’s what you need to know about them…
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Due to recent pullbacks in the share prices of a number of growth shares, now could be an opportune time to consider making some new additions to your portfolio.
But which ASX growth shares should you buy? Here are two which could be in the buy zone:
Altium Limited (ASX: ALU)
Altium is an electronic design software provider best known for its Altium Designer and Altium 365 platforms. It also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.
Thanks to industry tailwinds that are underpinning growth in electronic devices globally, these businesses look well-positioned to benefit from increasing demand.
And while COVID-19 has softened demand in the short term and could lead to Altium falling short of expectations in FY 2021, analysts at Citi believe investors should stick with the company.
It has recently retained its buy rating and $33.50 price target on the company’s shares. It feels Altium is nearing its COVID related downgrade cycle.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that has been tipped as a buy is Temple & Webster. It is one of Australia’s leading online retailers with a focus on furniture and homewares.
It recently released its third quarter update and revealed further strong top line growth. And while management’s decision to focus on winning market share at the expense of profit margins spooked some investors, analysts support this plan.
Morgan Stanley is one of them. Following its third quarter update, it retained its overweight rating and lifted its price target to $15.00. This compares to the current Temple & Webster share price of $10.70.
The broker expects the strategy to widen its moat and allow the company to take advantage of the shift to online shopping.
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 Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended 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.