Are you looking to add a growth share or two to your next month? Then take a look at the two ASX shares listed below.
Here's why they could be growth shares to buy in February:
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 with a portfolio of industry-leading poker machines and mobile games.
Aristocrat Leisure has had its growth stifled over the last 12 months due to the pandemic. But with casinos around the world opening, demand for its poker machines is expected to rebound and support its strong-performing digital business.
Last week UBS retained its buy rating and put a $35.50 price target on its shares. Its research appears to indicate that the company's digital segment is thriving and delivered exceptionally strong growth during the final quarter of 2020. This was largely due to its social gaming portfolio, which it estimates grew over 40% year on year during the three months.
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 customer numbers, merchants, and transaction value at a rapid rate over the last few years. This has been underpinned by the increasing popularity of the buy now pay later payment method with consumers and merchants, the decline in credit card usage, the shift online, and its international expansion.
Pleasingly, the company's strong form has continued in FY 2021, with Zip recently reporting stellar second quarter growth. For the three months ended 31 December, Zip delivered a 103% increase in transaction volume to a record $1.6 billion. A key driver of this growth was its US-based QuadPay business, which recorded a 217% increase in transaction volume to $673.1 million. QuadPay also reported a 180% lift in customer numbers to 3.2 million and a 655% jump in merchants to 8,400.
This update went down well with analysts at Ord Minnett. In response to the announcement, the broker retained its accumulate rating and increased its price target to $7.80.
