Looking for growth shares to buy? Listed below are two that you might want to consider adding to your portfolio.
Here's why they have been tipped as growth shares to buy:
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Altium Limited (ASX: ALU)
This leading electronic design software provider could be a top option for growth investors.
Altium is the company behind the Altium Designer and Altium 365 platforms, the NEXUS design collaboration platform, and the Octopart electronic parts search engine.
These platforms are used by some of the biggest businesses and organisations in the world. This includes giants such as Boeing, Microsoft, NASA, and Tesla.
Over the coming years, Altium is aiming to dominate the electronic design market and believes its new cloud-based Altium 365 platform is key to achieving this.
If it does deliver on this target, it should be supportive of strong earnings growth over the 2020s. Particularly given the size of the market, which is growing quickly thanks to the proliferation of electronic devices because of the Internet of Things and artificial intelligence markets.
Credit Suisse is positive on the company's outlook. It has an outperform rating and $35.00 price target on Altium's shares.
Xero Limited (ASX: XRO)
Another ASX growth share that could be a great option for investors is Xero. It is a cloud-based business and accounting software provider.
Xero provides businesses with a powerful all-in-one solution that allows users to run everything smoothly, keep tidy records, and make compliance a breeze. It also lets businesses automate tasks such as invoicing and reporting.
These benefits are clearly resonating with users and have underpinned meteoric customer and revenue growth over the last few years. Pleasingly, this has even continued during the pandemic.
Looking ahead, Goldman Sachs believes the company is well-placed to deliver multi-decade strong growth. This is thanks to its geographic expansion and the monetisation of its app ecosystem. The latter has been bolstered recently with a number of bolt on acquisitions. This includes Planday, Tickstar, and Waddle.
Goldman is very bullish on the company because of this. It currently has a buy rating and $157.00 price target on its shares.
