There are a good number of companies on the Australian share market aiming to grow their earnings at a solid rate over the 2020s.
Two ASX growth shares that stand out with particularly bold growth targets are listed below. Here's what they are targeting over the medium term:
Image source: Netflix
Altium Limited (ASX: ALU)
Altium is an electronic design software company which has exposure to the growing Internet of Things and artificial intelligence (AI) markets. These markets are underpinning the proliferation of electronic devices globally, which has been driving strong demand for software subscriptions. At the end of FY 2020, Altium had a total 51,006 subscriptions and was generating revenue of US$189.1 million.
Looking ahead, management appears confident this strong demand will continue. It is aiming to double its subscriptions to 100,000 and grow its revenue by 164% to US$500 million by FY 2025/26. If it achieves its subscription goal, management believes it will have market domination and be in a position to compel key industry stakeholders to support its agenda to transform electronic design and its realisation.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another ASX share that is targeting strong growth over the medium to long term is Domino's. It is the Domino's Pizza master franchise holder in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark.
At the end of FY 2020, the pizza chain operator had a network of 2,668 stores across these countries. While this is certainly a large number, management still sees significant room for growth in the future. It is aiming to more than double its network to 5,500 stores by 2033. In addition to this, it has a medium term target of growing its same store sales by 3% to 6% per annum. Management appears confident the combination of the two will drive strong sales growth over the 2020s.
