Are you looking for growth shares with the potential to beat the market? Then you might want to take a look at the ones listed below.
They have been tipped both as buys and for big things in the future. Here's what you need to know about them:
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Pushpay Holdings Group Ltd (ASX: PPH)
The first ASX growth share to consider is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector.
Pushpay has a significant runway for growth over the next decade. In FY 2020, it delivered a 32% increase in revenue to US$129.8 million. Whereas it has now set itself a long term target of growing its share of the US medium to large church market to 50%, which represents a US$1 billion opportunity. That's a massive ~eight times greater than FY 2020's revenue.
One of the keys to achieving this will be the US$87.5 million acquisition of church management system provider Church Community Builder. This acquisition has bolstered its offering and led to the launch of ChurchStaq.
Churchstaq is the combination of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and church management software (ChMS) to deliver a fully integrated engagement platform. Demand has been strong for the offering and looks set to underpin further stellar sales and earnings growth in FY 2021.
Goldman Sachs is a fan of Pushpay and believes it is well-placed for growth. It has a buy rating and ~$2.59 price target on its shares.
ResMed Inc. (ASX: RMD)
Another ASX growth share to look at is ResMed. This medical device company has been a very strong performer over the last decade thanks to increasing demand for its industry-leading products in the growing sleep treatment market.
The company has also benefitted during the pandemic from demand for ventilators. This helped underpin a very strong result in FY 2020 and equally robust first and second quarters of FY 2021.
In respect to the latter, the company recently revealed a 9% increase in second quarter revenue to US$800 million and a 17% increase in quarterly net profit to US$206.4 million.
In response to this update, analysts at Credit Suisse retained their outperform rating and $29.50 price target on the company's shares. According to the note, the broker believes ResMed is well-placed to benefit from a shift to home healthcare. This follows the company's investment in the out of hospital space over the last few years. This includes its US$800 million acquisition of Brightree in 2016.
