The Australian share market is home to a large number of companies that have been growing at a strong rate in recent years.
Three that have been tipped to continue this positive form are listed below. Here's why they could be top options for growth investors:
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Appen Ltd (ASX: APX)
Appen is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It has team of over a million contractors spread out across the world preparing or creating the data for the machine learning models of some of the world's largest companies and government agencies. Due to favourable industry tailwinds, analysts at Morgan Stanley believe it has strong long term growth potential. They recently put an overweight rating and $40.00 price target on its shares.
NEXTDC Ltd (ASX: NXT)
NEXTDC is one of the region's leading data centre operators. It has been delivering strong revenue and operating earnings growth in recent years thanks to increasing demand for capacity in its centres. The catalyst for this has been the structural shift to the cloud, which has accelerated during the pandemic. One broker that is very positive on its future is Goldman Sachs. It recently reiterated its buy rating and $13.20 price target on its shares. The broker even suggested the NEXTDC share price could go to $20.00 based on high but not unrealistic assumptions.
ResMed Inc. (ASX: RMD)
ResMed is a medical device company which has been growing at a consistently strong rate over the last decade. This has been underpinned by its industry-leading sleep treatment products and its growing market opportunity. Pleasingly for shareholders, its market is still growing strongly. Management believes there are upwards of a billion people suffering from sleep apnoea globally. As more and more become aware of the disorder and seek treatment, the company is in a strong position to benefit. Analysts at Morgans are positive on its outlook. They have an add rating and $30.99 price target on its shares.
