2 highly rated ASX growth shares for May

Afterpay Ltd (ASX:APT) and this ASX growth share could be top options for investors in May. Here’s what you need to know…

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Are you looking to add a growth share or two to your portfolio next month? Then take a look at the two ASX shares listed below.

Here’s why they could be growth shares to buy right now:

Afterpay Ltd (ASX: APT)

This buy now pay later (BNPL) provider could be a good option for growth investors.

It has been growing at a rapid rate over the last few years and this has continued in FY 2021. For example, during the third quarter, Afterpay reported a 104% increase in underlying sales to $5.2 billion.

This strong performance was driven by a 75% increase in active customers globally to 14.6 million and increasing customer frequency across all regions.

The good news is that the company still has a significant runway for growth over the next decade thanks to the lucrative US and UK markets and its expansion across Europe and Asia.

In addition to this, the company is expanding beyond BNPL into savings accounts and cash flow tools with its Afterpay Money app. That is scheduled to launch early in FY 2022 and could be another key driver of growth in the future.

One broker that is positive on the company is Morgan Stanley. Its analysts have recently put an overweight rating and $149.00 price target on its shares.

Pro Medicus Limited (ASX: PME)

Another growth share to consider is Pro Medicus. It is a healthcare technology company that provides healthcare organisations with radiology information systems, picture archiving and communication systems, and advanced visualisation solutions.

Like Afterpay, it has been a strong performer during the pandemic. In February the company reported a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

Positively, since the end of the first half, the company has won a number of lucrative long term contracts with major healthcare institutions. It also still has a large pipeline of sales opportunities that could be converted in the near future, particularly given its industry-leading technology and the structural shift away from legacy systems. 

Goldman Sachs is a fan. The broker currently has a buy rating and $53.80 price target on its shares.

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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 Pro Medicus Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Pro Medicus 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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