2 ASX growth shares to buy for big returns in 2021

a2 Milk Company Ltd (ASX:A2M) and this ASX growth share could be the ones to buy for big returns in 2021…

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If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow very strongly in the coming years.

Two top growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

a2 Milk Company Ltd (ASX: A2M)

This infant formula and fresh milk company’s shares have been out of form this year. This share price weakness has been driven largely by concerns that its near term performance could be impacted by the pulling forward of sales into FY 2020 during the pandemic and weakness in the daigou channel. While this certainly appears to be the case, management remains confident that this is just a short term headwind.

One broker that agrees is Morgans. It believes its challenges are transitory and its share price weakness is a buying opportunity. The broker has an add rating and $17.28 price target on a2 Milk shares. Based on the latest a2 Milk share price, this would mean a potential return of 31% over the next 12 months.

Nearmap Ltd (ASX: NEA)

Nearmap is an aerial imagery technology and location data company. Thanks to geographic expansions, new growth initiatives, and the quality of its offering, particularly its new AI product, management believes the company is well-positioned for growth in the future. So much so, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley appears happy with these targets and is recommending Nearmap as a buy. Last month the broker retained its overweight rating and $3.10 price target on its shares. Based on the current Nearmap share price, this implies potential upside of over 41% over the next 12 months.

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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