Are you looking to add a growth share or two to your portfolio in January? Then take a look at the two ASX shares listed below.
Here's why they could be growth shares to buy right now:
Aristocrat Leisure Limited (ASX: ALL)
The first growth share to look at is Aristocrat Leisure. It is one of the world's leading gaming technology companies. Thanks to its industry-leading pokie machines and the huge potential of its digital and social gaming business, Aristocrat Leisure has been tipped for strong growth over the 2020s.
And while it is currently facing headwinds due to the pandemic, trading conditions are beginning to normalise.
So much so, analysts at Citi expect the company to bounce back in FY 2021 and then build on this in the years that follow. As a result, the broker has recently retained its buy rating and lifted the price target on its shares to $40.60. This compares to the current Aristocrat Leisure share price of $31.40.
ResMed Inc. (ASX: RMD)
Another growth share to look at is ResMed. This medical device company has been growing strongly in recent years thanks to increasing demand for its industry-leading products in the fast-growing sleep treatment market.
The company has also benefitted during the pandemic from demand for ventilators. This helped underpin a very strong result in FY 2020 and an equally robust first quarter of FY 2021.
Analysts at Credit Suisse are very positive on the company. The broker recently upgraded the company's shares to an outperform rating and put a $31.00 price target on them.
It believes ResMed is well placed to benefit from a shift to home healthcare following the pandemic. Credit Suisse feels this will lead to the company delivering double digit earnings growth for a number of years to come. The ResMed share price ended the day at $27.50 on Monday.
