Afterpay Ltd (ASX: APT) and this ASX growth share could be great buy and hold options for investors. Here’s why…
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If you’re looking to invest in a growth share or two, then you might want to consider the ones listed below.
Here’s why these ASX shares could be top options for growth investors looking at long term buy and hold options:
Afterpay Ltd (ASX: APT)
The first option to look at is Afterpay. This buy now pay later (BNPL) provider could be a great buy and hold option due to its extremely positive long term growth outlook.
This is thanks to its leadership position in the rapidly growing BNPL industry and its expansion into other financial products and geographies.
In respect to the latter, the company recently expanded into mainland Europe and Canada and is now looking closely at the Asian market, where tech giant Tencent is supporting it.
As for the expansion of its product offering, the company plans to launch the Afterpay Money app in the coming months. This will provide savings accounts and cash flow tools, but may not stop there. There is speculation the company could eventually offer personal loans and even mortgages.
One broker that is positive on the company is Bell Potter. It currently has a buy rating and $168.50 price target on its shares.
Xero Limited (ASX: XRO)
Another ASX growth share that could be a top buy and hold option is Xero. It was an accounting platform provider which over the last few years has evolved into a full service cloud-based business and accounting solution to small and medium sized businesses globally.
This evolution has been a huge success and underpinned very strong customer and revenue growth.
Looking ahead, the company looks well-placed to continue its strong growth thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem.
It is the latter that Goldman Sachs is particularly positive on. It believes Xero could have a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.
Goldman has a buy rating and $153.00 price target on its shares.
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*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 Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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