Are you looking for growth shares with the potential to beat the market in 2021? Then you might want to take a look at the ones listed below.
They have been tipped as buys and for big things in 2021. Here's what you need to know:
Adore Beauty Group Limited (ASX: ABY)
The first growth share to look at is Adore Beauty. It is a recently listed online retailer which sells beauty and personal care products. It currently has over 590,000 Active Customers across the ANZ region on its platform and is expecting to generate revenue of $158.2 million in 2020. This will be a 76% increase on 2019's sales.
Pleasingly, this revenue is still only scratching at the surface of an ANZ beauty and personal care products market that was worth $10.9 billion in 2019. This gives the company a long runway for growth over the next decade.
Morgan Stanley is a fan of the company and appears very positive on its future. The broker recently put an overweight rating and $8.35 price target on the company's shares. It believes the company will benefit from the shift to online shopping, which is accelerating because of the pandemic.
Pushpay Holdings Group Ltd (ASX: PPH)
Another growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector.
As with Adore Beauty, it has a significant runway for growth over the next decade. In FY 2020, Pushpay delivered a 32% increase in revenue to US$129.8 million. Whereas it now has a long term aim of growing its share of the US medium to large church market to 50%. This represents a US$1 billion opportunity, which is almost eight times greater than FY 2020's revenue.
The US$87.5 million acquisition of church management system provider Church Community Builder is expected to play a key role in the company achieving this target. This acquisition has bolstered its offering and led to the launch of ChurchStaq.
Churchstaq is the combination of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and church management software (ChMS) to deliver a fully integrated engagement platform.
Goldman Sachs sees a lot of promise in the platform and believes Pushpay is well-placed for growth. It has a conviction buy rating and ~$2.59 price target on its shares.
