2 exciting ASX growth shares to buy for your portfolio

Zip Co Ltd (ASX:Z1P) and this ASX growth share could be worth considering as additions to a balanced portfolio…

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If you have room in your portfolio for a growth share or two, then you might want to take a look at the ones listed below.

Both have been named as buys and tipped to deliver strong growth over the coming years. Here’s what you need to know:

Nanosonics Ltd (ASX: NAN)

With the COVID-19 crisis highlighting the importance of infection control, Nanosonics looks well-placed for the future. At present the company is a bit of a one-trick pony with its hugely popular and industry-leading trophon EPR disinfection system for ultrasound probes.

However, it is aiming to launch several new products in the near future which have similar addressable markets. Given the favourable tailwinds supporting infection prevention, these products could take its growth up a level if management finally releases them after several delays.

One broker that thinks investors should be patient with Nanosonics is UBS. The broker believes the company is a high-quality and structural growth story and expects it to benefit from post-COVID infection prevention tailwinds. UBS has a buy rating and $7.20 price target on the company’s shares.

Zip Co Ltd (ASX: Z1P)

Another growth share to look at is Zip. It is a leading buy now pay later provider with operations across several key markets such as Australia, the United Kingdom, and the United States.

Zip has been growing its transaction value and customer numbers at a very strong rate over the last few years. This has been driven by the growing popularity of the buy now pay later payment method with consumers and merchants, the decline in credit card usage, and its international expansion.

The company has also launched a few complementary products which have been tipped to support its growth in the future. These include Zip Business and its Tap & Zip product.

Analysts at Morgans are very positive on its outlook. Following its capital raising last month, the broker put an add rating and $8.89 price target on its shares. This compares to the current Zip share price of $5.61.

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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 Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nanosonics Limited. 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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