2 buy-rated ASX growth shares for your portfolio

Nanosonics Ltd (ASX:NAN) and this ASX growth shares have buy ratings on them. Here's why they could be good additions to your portfolio…

Looking for a growth share or two to buy this month? Then you might want to check out the two listed below.

Here's why these growth shares could be in the buy zone right now:

man jumping for joy carrying shopping bags

Image source: Getty Images

Nanosonics Ltd (ASX: NAN)

Nanosonics is a healthcare technology company with a focus on infection control. 

The company currently derives all of its revenue from its trophon EPR disinfection system for ultrasound probes. This technology is regarded as the best in its class and has been consistently winning market share in the United States and globally over the last decade.

So much so, every day an estimated 80,000 patients are protected from the risk of cross contamination because the ultrasound probe has been high-level disinfected with trophon.

Pleasingly, the company is aiming to expand its portfolio in the coming years with the launch of new products targeting unmet needs. If these are even half as successful as the trophon system, then the future will be very bright for Nanosonics.

UBS currently has a buy rating and $7.00 price target on its shares

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to consider buying is Temple & Webster. It is one of Australia's leading online retailers with a focus on furniture and homewares.

It has been growing at a rapid rate in recent years and appears well-placed to continue this trend for the foreseeable future. Particularly given the shift to online shopping, which is still largely in its infancy for furniture and homewares.

In fact, in February Goldman Sachs suggested that the company could grow its sales at a compound annual growth rate (CAGR) of 42% and EBITDA by a CAGR of 66% between FY 2020 and FY 2023.

In light of this, it will come as no surprise to learn that the broker put a buy rating and $12.35 price target on its shares.

It commented: "We remain attracted to the structural tailwind of online commerce penetration and note that TPW has a leading position within its category which itself has a significant room for further online commerce growth. This should deliver well above market revenue growth and solid operating leverage over our forecast period."

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 Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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