Due to recent pullbacks in the share prices of a number of growth shares, now could be an opportune time to consider making some new additions to your portfolio.
But which ASX growth shares should you buy? Here are two which could be in the buy zone:
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Altium Limited (ASX: ALU)
The first ASX growth share to look at is Altium. It is an electronic design software provider best-known for its Altium Designer and Altium 365 platforms. It also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.
These businesses look well-positioned for growth over the long term thanks to the rapidly growing internet of things and artificial intelligence markets. These markets are underpinning an explosion in electronic devices globally, which is leading to increased demand for Altium's offering.
One broker that is positive on the company's future is UBS. Last month the broker upgraded Altium's shares to a buy rating with a $34.00 price target. This compares to the latest Altium share price of $26.72.
Xero Limited (ASX: XRO)
Another ASX growth share to consider is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses globally.
Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. Particularly given recent acquisitions, which are strengthening its offering and positioning it for growth. One of those was the Planday acquisition that was announced earlier this month. Xero will pay up to $284.6 million for the workforce management platform.
In addition to this, the company looks well-placed for long term growth thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem.
The latter is something Goldman Sachs is particularly positive on. It believes Xero could have a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.
Goldman has a buy rating and $157.00 price target on its shares. This compares to the current Xero share price of $117.67.
