If the ASX crashes again then I'm prepared, I've got some top ASX growth share targets picked out to buy.
Growth shares have the best chance of producing market-beating returns over the long-term in my opinion.
But the best time to buy shares is when they're trading at good value. So I've got my eyes on these top ASX growth shares:
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Share 1: Altium Limited (ASX: ALU)
Altium is an electronic PCB software business. It's trying to become the world leader with a target of 100,000 Altium Designer subscribers by 2025. This will help Altium achieve its goal of US$500 million revenue by 2025.
The ASX tech share recently came out to say that its sales and revenue have grown by 10% in FY20, but what was more pleasing was the growth in its subscribers which will help the profit in future years. The number of new Altium Designer seats sold increased by 14% and there was record growth of 17% in the subscription base to well over 50,000 subscribers.
Altium has a long-term growth runway. The world is becoming increasingly technology. There is the 'Internet of Things' trend which is only going to become more prevalent. Altium is leveraged to this development.
I think the growth of subscriber numbers for Altium is positive, as is the cash balance of more than US$90 million.
At the current Altium share price it's trading at 48x FY22's estimated earnings.
I think Altium is a very high-quality business, but I'd prefer to buy shares at a cost of under $30 per share. I think that price could be presented to us some time in the next six months.
Share 2: Australian Ethical Investment Limited (ASX: AEF)
The last year has been very volatile for the ethically-focused fund manager. The bushfires last year caused a lot of interest in Australian Ethical's focus on greener investments.
The ASX share was also very volatile through the COVID-19 crash and recovery. On 23 March 2020 it dropped to a share price of $2.07 and by 19 June 2020 it had rocketed to $9.07. The Australian Ethical share price has since settled back to today's price of $6.25.
In terms of its earnings and funds under management (FUM), FY20 was actually a solid year. FUM grew by 18.6% to $4.05 billion. The fund manager also said that it expects its underlying profit after tax before performance fees to be between $6.8 million to $7.5 million. This would mean a mid-point increase of 10%.
It's debt free and is steadily growing its earnings. However, it's trading at a very high price/earnings ratio, so I'd rather buy it at a level closer to $5 or under.
Share 3: Magellan High Conviction Trust (ASX: MHH)
This ASX share is a listed investment trust (LIT) which has a high-conviction portfolio of around 10 names that it believes will perform strongly over the coming years.
Many of the best growth shares out there aren't listed on the ASX. They are names like Alibaba, Alphabet, Microsoft, Facebook and Visa. These businesses have extremely strong economic moats, long growth runways and impressive profit margins.
Magellan Financial Group Ltd (ASX: MFG) likes to focus on quality businesses that will be able to deliver good compound returns over many years. I'm not sure what the next six months holds for this LIT, but I think it will be a solid performer over the next five to ten years.
At the current Magellan High Conviction Trust share price, it's trading at an 8% discount to its net asset value (NAV). It also comes with a target distribution yield of 3%.
Foolish takeaway
I like all three of these shares, but I think I'd prefer to buy them at prices a bit lower than today. If I had to choose one of them three right now I'd go for the Magellan Trust because of the attractive NAV discount and the current strength of the Australian dollar.
