2 of the best ASX growth shares to buy now

Altium Limited (ASX:ALU) and this ASX growth share could be among the best options for growth investors right now. Here's why….

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

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.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

chart showing an increasing share price
Growth Shares

Buy these excellent ASX growth shares for 15% to 20% returns

Analysts think big returns could be on the cards for owners of these shares.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These ASX 200 growth shares could rise 12% to 30%

Analysts think big returns could be on offer from these shares.

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Growth Shares

Hoping to beat the ASX 200? I'd consider buying these 3 ASX shares

Analysts think these shares can outperform the market.

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

5 top ASX growth shares to buy in April

Analysts think growth investors should be buying these shares.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Growth Shares

These mid-cap ASX shares could rise 20% to 50%

Goldman Sachs is tipping these stocks as buys.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Growth Shares

2 ASX growth shares that could turn $1,000 into $10,000 by 2034

I think these two stocks have a shot at being 10-baggers.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These top ASX 200 growth shares can rise 10% to 50%

Analysts see major upside ahead for these buy-rated shares.

Read more »

A young man wearing glasses writes down his stock picks in his living room.
Growth Shares

I think this ASX growth stock has market-beating potential

I'm betting that this investment will crush the ASX over the next few years.

Read more »