There are a large number of ASX shares to choose from on the Australian share market.
Five that come highly rated are listed below. Here's why these ASX shares are being tipped as buys:
Altium Limited (ASX: ALU)
Altium is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platforms. Given that PCBs are found inside almost all electronic devices, the company has been benefitting greatly from the proliferation of electronic devices due to the Internet of Things and artificial intelligence markets.
Analysts at Morgan Stanley expect this to continue. They have an overweight rating and $40.00 price target on the company's shares. The broker appears confident on the company's long term growth prospects.
Appen Ltd (ASX: APX)
Appen provides and prepares the data that goes into artificial intelligence and machine learning models. This includes for some of the biggest tech companies in the world. Given the growing importance of artificial intelligence for businesses and governments, the company has been tipped for strong growth during the 2020s.
A note out of Macquarie reveals that its analysts have an outperform rating and $43.00 price target on the company's shares. The broker believes Appen will benefit greatly from the increasing spend on artificial intelligence.
IDP Education Ltd (ASX: IEL)
IDP Education is a provider of international student placement and English language testing services. While it has been hit incredibly hard by the pandemic, it has been tipped to come out of the crisis in an even stronger market position. This could make it a big winner when a COVID-19 vaccine is released.
Earlier this month analysts at Morgans reiterated their add rating and lifted the price target on the company's shares to $25.09. They believe the company is well-placed for growth once trading conditions return to normal.
NEXTDC Ltd (ASX: NXT)
NEXTDC is a leading data centre operator which has been benefiting from the increasing amount of data being generated by consumers and businesses. This has particularly been the case during the pandemic when the shift to the cloud led to a surge in demand for data centre capacity.
One broker that is particularly bullish due to this increasing demand is Goldman Sachs. It recently reiterated its buy rating and $13.20 price target on the company's shares. It even suggested the NEXTDC share price could be worth upwards of $20.00 based on high but not unrealistic assumptions.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a fast-growing donor management and community engagement platform provider for the faith sector. It has been an exceptionally strong performer this year and recently reported a 48% increase in total processing volume to US$3.2 billion and a 53% increase in operating revenue to US$85.6 million for the first half of FY 2021. This is still well short of management's long term revenue target of US$1 billion.
Analysts at Goldman Sachs have a conviction buy rating and $10.35 price target on its shares. The broker notes that Pushpay's platform is beginning to demonstrate sticky qualities and is well-positioned for growth.
