3 outstanding ASX shares growing rapidly

Nuix Limited (ASX: NXL) and these ASX shares are growing rapidly and have been tipped as ones to buy…

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A man drawing an arrow on a growth chart, indicating a surging share price

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Fortunately for growth investors, there are a good number of companies growing at a strong rate on the Australian share market.

Three ASX growth shares that you might want to get better acquainted with are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is Australia’s number one online beauty retailer. At the last count, it had just under 600,000 active customers and was expecting to generate revenue of $158.2 million from them in calendar year 2020. This will be a big increase on the prior corresponding period and is being driven by the ongoing shift to online shopping. Morgan Stanley is a fan of the company and currently has an overweight rating and $8.35 price target on its shares.

Megaport Ltd (ASX: MP1)

Megaport is a provider of elastic interconnection services across data centres globally. Thanks to the shift to the cloud and its growing footprint in data centres, Megaport has been growing strongly over the last few years. This has continued in FY 2021, with Megaport recently reporting a 10% quarter on quarter increase in second quarter underlying monthly recurring revenue (MRR) to $6.3 million. Goldman Sachs was pleased with its update and has put a buy rating and $15.00 price target on its shares. Goldman expects Megaport to benefit from growing demand for public cloud infrastructure and the broadening of its product suite.

Nuix Limited (ASX: NXL)

Nuix is a leading provider of investigative analytics and intelligence software. Its software helps process, normalise, index, enrich, and analyse large amounts of data from different sources. This has proven invaluable during investigations including the Banking Royal Commission. Nuix delivered a 25.9% increase in total revenue to $175.9 million in FY 2020 and is expected to report further growth in the current financial year. Morgan Stanley is also a fan of Nuix. It currently has an overweight rating and $11.00 price target on the company’s shares.

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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 and recommends MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Nuix Pty Ltd. 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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