2 ASX growth shares to buy

Altium Limited (ASX:ALU) and this ASX growth share could be top options for investors in 2021…

| More on:
Investor riding a rocket blasting off over a share price chart

Image source: Getty Images

Are you looking for a growth share or two to buy in 2021? Listed below are two top growth shares to look at.

Both have been growing strongly in recent years and have been tipped to continue this positive form in the 2020s. Here’s why they are highly rated:

Altium Limited (ASX: ALU)

Altium is a leading printed circuit board (PCB) design software provider. Its software is used by countless companies around the world to design the complex circuit boards that you’ll find inside almost all electronic devices.

The good news for Altium is that due to the artificial intelligence and internet of things booms, there has been a proliferation of electronic devices over the last decade. This rapid growth is expected to continue over the next decade, which should underpin growing demand for its award-winning software.

Management is confident in its growth trajectory and is targeting revenue of US$500 million by 2025-26. This will be a 150% increase on FY 2020’s revenue.

Analysts at Morgan Stanley are confident on its future. They have an overweight rating and $40.00 price target on the company’s shares.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. Its software streamlines processes such as employee administration, recruitment, remuneration, and payroll through a single a unified platform.

At present the company is operating in both the ANZ and UK markets. In respect to the latter, the company has just bolstered its position in this $6.8 billion market with the acquisitions UK-based Breathe and Webexpenses. Importantly, this also provides it with plenty of cross sell opportunities for its existing services.

A recent note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on the company’s shares to $9.70.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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 January 12th 2022

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 and recommends Altium and Elmo Software. The Motley Fool Australia has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

a woman in business wear looks at her phone against the window of a high rise space with a city landscape view of tall buildings outside.
Broker Notes

Buy these ASX growth shares in May: experts

We check the credentials of two ASX companies that are rated as buys by brokers.

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

2 stellar ASX 200 growth shares analysts rate as buys

Here are a couple of exciting growth shares that have been rated as buys...

Read more »

Rocket powering up and symbolising a rising share price.
Growth Shares

Analysts name 2 ASX growth shares to buy now

Here are two ASX growth shares to buy...

Read more »

A laughing woman wearing a bright yellow suit, black glasses and a black hat spins dollar bills out of her hands signifying the big dividends paid by BHP
Growth Shares

2 ASX growth shares I’d buy today with $5,000

ASX growth shares are looking like attractive opportunities. Here are two.

Read more »

A hand hovers over a laptopn sparkling with tech symbols, indicating ASX technology shares
Growth Shares

2 beaten down ASX tech shares analysts say have major upside potential

These beaten down tech shares could be buys according to analysts...

Read more »

A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.
Growth Shares

Why I think the EML share price is a long-term buy

Here's why I think EML shares are looking very good value for the long haul.

Read more »

A businessman holding a butterfly net looks around hoping to snare a good ASX share investment
Growth Shares

Why I would invest $10,000 into these ASX shares today

Here are two quality ASX shares that I would buy with $10,000...

Read more »

A woman faces the camera with her lip raised up to the side in total confusion.
Growth Shares

2 ASX-listed companies that are growing rapidly

These two ASX shares have dropped heavily, yet as companies they continue to grow.

Read more »