If you're currently searching for a few shares to add to your portfolio, then you could do a lot worse than the ones listed below.
Here's why these ASX shares come highly rated right now:
Adore Beauty Group Limited (ASX: ABY)
The first ASX share to look at is Adore Beauty. It is Australia's number one pureplay online beauty retailer with almost 600,000 active customers. It is expecting to report revenue of $158.2 million for calendar year 2020. This will be a sizeable increase on the prior corresponding period. While this is a large number, it is still only a fraction of its market opportunity. Management estimates that it has an ~$11 billion a year opportunity in the Australian beauty and personal market. Morgan Stanley is positive on the company. It currently has an overweight rating and $8.35 price target on its shares.
NEXTDC Ltd (ASX: NXT)
Another ASX share to look at is NEXTDC. It is a leading data centre-as-a-service provider with 11 centres in key locations across Australia. From these Tier III and Tier IV facilities, it provides world-class colocation services to local and international organisations. It has been a big winner from the acceleration of the shift to the cloud caused by the pandemic. This has underpinned a significant increase in demand for capacity in its data centres and strong sales and earnings growth. Looking ahead, NEXTDC now has its eyes on the Asian market and has opened up offices in a number of key locations. If this expansion is a success, it could give it a very long runway for growth. Morgans is a fan of the company. It currently has an add rating and $13.89 price target on its shares.
Xero Limited (ASX: XRO)
A final ASX share to look at is this cloud-based business and accounting software provider. Despite the pandemic's impact on small businesses, Xero has continued to perform strongly in FY 2021. For example, in November, it released its half year results and revealed operating revenue growth of 21% to NZ$409.8 million. This was driven partly by a 19% increase in total subscribers to 2.45 million. Goldman Sachs is very bullish on the company and has a buy rating and $157.00 price target on its shares. The broker believes Xero has a multi-decade runway for strong revenue growth.
