There are plenty of ASX growth shares that are trading at much cheaper prices because of the coronavirus.
Some ASX shares like CSL Limited (ASX: CSL) are barely down from when the ASX started falling in February, I don’t think that’s where the opportunities are.
However, these top ASX growth shares could be buys for investors in April:
Pushpay Holdings Ltd (ASX: PPH)
I think Pushpay is one of the most promising small caps on the ASX with its electronic giving. It also enables its clients to livestream as well. This is very useful for churches wishing to still carry out some form of mass during lockdowns – it’s particularly useful coming up to Easter.
Pushpay seemed like a solid idea before the outbreak because it had just reached profitability, it was growing its customer base, it had just made a smart bolt-on acquisition and its profit margins continue to rise.
But, Pushpay’s offering is perfectly suited to help churches through this period of social distancing and connecting by video. It recently upgraded its profit guidance for FY20.
Magellan Global Trust (ASX: MGG)
The globe’s biggest technology companies are some of the best placed businesses to get through this. Their balance sheets are very strong and a lot of their services are delivered digitally – which is much less impacted compared to industries like retail or travel.
Magellan Global Trust is a listed investment trust (LIT) which invests in some of the best global shares. Its top holdings include Microsoft, Alphabet, Facebook, Visa, Mastercard and Alibaba. It also owns some defensive shares like utilities which are well placed to deliver outperform during times like this, particularly with low interest rates which increases the value of those cashflows.
I have invested in the LIT during the market falls because I think its holdings and strategy have excellent long-term potential. I was also pleased to buy it at a good discount to its net asset value (NAV) per unit. At the pre-open share price it’s trading at a 4.4% discount to its NAV.
Webjet Limited (ASX: WEB)
The online travel business has seen its share price smashed. The speed and scale of the outbreak and restrictions has been unprecedented.
Webjet recently did a capital raising so that it would be able to survive through to the end of the year even if conditions remain dire for travel.
There’s a long road ahead until life starts getting closer to normal. But Australia seems to have a good handle on the outbreak and this could be to the benefit of Webjet. However, if there’s a second wave of infections it could make everyone re-think the potential schedule for lifting some of the restrictions.
FY20 (and perhaps FY21) will look disastrous on the Webjet financials, but we now need to think about the longer-term for the travel shares.
I think the share price is now so low that brave investors may be handsomely rewarded with this high-risk idea by the end of FY22.
All three of these shares are materially down since the start of the outbreak but offer very attractive value in my opinion. At the current prices I’m probably attracted to Pushpay the most because of the near-term growth potential for the shift to electronic giving, but I think Magellan Global Trust would make a great long-term pick too.
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Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX and Webjet Ltd. 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.