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2 ASX growth shares to buy this month

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There are a large number of growth shares listed on the Australian share market for investors to choose from.

So many, it can be hard to decide which ones to buy ahead of others. Two growth shares that have been rated as buys recently are listed below. Here’s what you need to know about them:

a2 Milk Company Ltd (ASX: A2M)

a2 Milk Company is a leading New Zealand-based fresh milk and infant formula company. Although FY 2021 is likely to be a rare off-year for the company because of the pandemic’s impact on the daigou channel and pantry stocking pulling forward sales into FY 2020, management remains confident that these are short term headwinds. It commented: “We are of the view that this short-term impact to the daigou channel will prove to be temporary, assuming stabilisation of COVID-19 related issues in Australia.”

One broker that agrees with this view and expects a2 Milk Company’s growth to accelerate once the headwinds ease is UBS. Earlier this week the broker put a buy rating and NZ$20.50 (A$19.37) price target on its shares. It believes investors should look beyond short-term volatility and focus on the potentially substantial gains in market share in China in the future.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a leading provider of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to healthcare organisations across the globe. It has been growing at a consistently strong rate over recent years thanks to increasing demand for its software.

This has caught the eye of analysts at Morgans, which recently put an add rating and $33.32 price target on the company’s shares. The broker believes the company’s leading software puts it in a position to win new contracts in an industry expected to grow at a strong rate in the future.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk and Pro Medicus 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.

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