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…

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:

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

Image source: Getty Images

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 group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
Growth Shares

Droneshield vs Xero: Which ASX tech stock is the better buy for a young growth investor?

Which stacks up better on fundamentals and recent price action?

Read more »

Stock market board with green numbers.
Growth Shares

This is an exciting ASX growth share that experts think is a buy

This stock has a lot of growth potential.

Read more »

Man smiling ahead while working on his MacBook.
Growth Shares

I searched for the next great ASX compounder. These shares deserve attention

I believe these shares could deliver strong returns for patient investors.

Read more »

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Growth Shares

2 ASX shares highly recommended to buy: Experts

Analysts are excited about these two ASX stocks…

Read more »

Piles of increasing coins alongside an hourglass.
Growth Shares

Zip vs WiseTech: Which is the superior ASX growth stock today?

We dive into Zip vs WiseTech to see which ASX tech share looks better placed for strong growth from here.

Read more »

Hand sketching investment growth concept chart with chalk on blackboard.
Growth Shares

A rare buying opportunity in 1 of Australia's top shares?

This looks like a great time to invest in this former high-flyer…

Read more »

Colleagues checking out company's financial numbers on a laptop.
Growth Shares

A top fund manager is bullish on these ASX 200 shares

One of the leading fund managers has picked out these stocks.

Read more »

The hands of three people are cupped around soil holding three small seedling plants that are grouped together in the centre of the shot with the arms of the people extending into the edges of the picture representing ASX growth shares and it being a good time to buy for future gains
Growth Shares

Droneshield vs Pro Medicus: Which is the better ASX growth stock right now?

Pro Medicus and Droneshield are both popular ASX growth shares, but only one stands out for quality and momentum right…

Read more »