Are you a fan of growth shares? If you are, you may want to take a look at the two listed below.
Here's what you need to know about them:
Altium Limited (ASX: ALU)
The first growth share to look at is Altium. It is an electronic design software provider which has been growing strongly over the last few years. And while the pandemic is stifling its performance this year, management remains confident that it still has a long runway for growth.
This is thanks to its exposure to the growing Internet of Things and Artificial Intelligence markets, which are underpinning solid demand for subscriptions. So much so, Altium is aiming to almost double its subscriber numbers to 100,000 and its revenue by ~150% to US$500 million by 2025/26.
Analysts at Credit Suisse remain positive on its outlook despite its current headwinds. They have recently put an outperform rating and $35.00 price target on its shares.
Megaport Ltd (ASX: MP1)
Megaport is a provider of elastic interconnection services across data centres globally. Its clever service allows its users to increase and decrease their available bandwidth in response to their own demand requirements.
This is proving to be a popular alternative to fixed service levels on long-term and expensive contracts. So much so, Megaport has been growing its monthly recurring revenue (MRR) at a strong rate over the last few years.
This has continued in FY 2021, with Megaport recording a 10% increase in second quarter growth underlying MRR to $6.3 million.
Analysts at Goldman Sachs were pleased with its update and have just upgraded its shares to a buy rating with a $15.00 price target. Goldman believes Megaport will benefit from growing demand for public cloud infrastructure and the broadening of its product suite. Its analysts also have increased confidence on its path to generating positive free cash flow.
