If you have a penchant for growth shares, then I have good news for you. The Australian share market is home to a good number of companies growing their earnings at a quick rate.
Three ASX growth shares that could be worth a closer look are listed below. Here's what you need to know about them:
Kogan.com Ltd (ASX: KGN)
Kogan is one of Australia's leading ecommerce companies. It has been a huge winner from the accelerating shift to online shopping caused by the pandemic. For example, during the first half of FY 2021, Kogan reported a 97.4% increase in gross sales to $638.2 million and a whopping 250.2% lift in adjusted net profit after tax to $36.5 million. This was driven by a large increase in active customers, acquisitions, and strong Exclusive Brands sales. Analysts at Credit Suisse were pleased with its performance. The broker has put an outperform rating and $20.85 price target on its shares.
NextDC Ltd (ASX: NXT)
Another growth share to look at is NextDC. It is Australia's leading data centre operator, with a total of nine centres located across Australia. It has been benefitting greatly from a different shift – the shift to the cloud. This has led to a significant increase in demand for the company's highly interconnected platform of premium colocation data centres. So much so, it led to NextDC recently reporting a 29% increase in EBITDA to $65.7 million for the first half. Pleasingly, more of the same is expected in the second half. In response to its results, UBS put a buy rating and $15.40 price target on its shares.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is leading donor management and community engagement platform provider for the faith sector. Like the others, it has been growing at a rapid rate in FY 2021 despite the pandemic. Strong demand in the United States means that Pushpay is expecting to achieve full year operating earnings of US$56 million and US$60 million. This will be up a massive 123% to 139% year on year. And thanks to further operating leverage, its bottom line earnings are expected to grow even quicker. Analysts at Goldman Sachs are positive on the company. They have a conviction buy rating and $2.59 price target on its shares.
