2 excellent ASX shares that could be strong buys

Altium Limited (ASX:ALU) and this ASX share could be strong buys right now. Here's what you need to know about these excellent shares…

| More on:
A fit man flexes his muscles, indicating a positive share price movement on the ASX market

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

If you're wanting to take your portfolio to the next level, then buying these quality ASX shares could be one way to do it.

Here's why these ASX shares are highly rated and could be strong buys right now:

Altium Limited (ASX: ALU)

Altium is an electronic design software provider that is best-known for its Altium Designer and Altium 365 platforms. But it doesn't stop there, it also has the Octopart search engine and the NEXUS collaboration platform supporting its growth.

Altium's platforms are widely regarded as the best in the industry and used by many of the world's largest companies. One of those is electric vehicle giant Tesla. 

Thanks to favourable technology trends such as artificial intelligence and the internet of things, demand for its software is expected to grow strongly over the next decade. So much so, management is aiming to grow its revenue to US$500 million and its subscriber base to 100,000 by 2025/26. This compares to subscribers of 52,157 at the end of December and its FY 2021 revenue guidance of US$190 million to US$195 million. 

One broker that is a fan is Morgan Stanley. It currently has an overweight rating with a $37.00 price target on its shares.

REA Group Limited (ASX: REA)

REA Group is the dominant player in real estate listings in the Australian market. After several years of growth despite battling a housing market downturn and COVID-19, REA Group looks well-placed to go into overdrive now. 

After cutting costs materially and introducing new revenue streams, the company looks set to reap the rewards as demand for listings jumps thanks to the thriving housing market. This should be supported by its international operations, which have large opportunities as well.

Macquarie is very positive on REA Group. Its analysts currently have an outperform rating and $171.70 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. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended REA Group Limited. 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

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

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »