There are a lot of growth shares for investors to choose from on the Australian share market.
Two in the tech sector that come highly rated are listed below. Here's why they have been named as ones to buy:
Afterpay Ltd (ASX: APT)
Afterpay is a leading payments company with a focus on the buy now pay later (BNPL) market. It is also planning to launch savings accounts and cash flow tools through a partnership with Westpac Banking Corp (ASX: WBC) in the near future. It has been growing at an extraordinary rate over the last few years thanks to the increasing popularity of the BNPL payment method with both consumers and retailers. So much so, during the first quarter of FY 2021, Afterpay recorded underlying sales growth of 115% to $4.1 billion.
One broker that was pleased with this performance was Morgan Stanley. In response to its quarterly update, the broker retained its overweight rating and $115.00 price target. The Afterpay share price is currently fetching $101.85, which means potential upside of approximately 13% based on this price target.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a fast-growing donor management and community engagement provider to the church market. Thanks to the quality of its platform, its leadership position, and the shift to a cashless society, it has been growing at a very strong rate. In fact, earlier this month the company released its half year results and revealed a 48% increase in total processing volume to US$3.2 billion and a 53% increase in operating revenue to US$85.6 million. And thanks to the further widening of its margins, EBITDAF grew 177% to US$26.7 million.
This caught the eye of analysts at Goldman Sachs, who have put a conviction buy rating and $10.35 price target on the company's shares. Based on the current Pushpay share price of $7.07, this price target implies potential upside of over 46%.
