2 explosive ASX growth shares rated as buys

NEXTDC Ltd (ASX:NXT) and this ASX growth share could be top options for investors. Here’s why they are highly rated right now…

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With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two ASX growth shares that could be top options for investors today. Here’s what you need to know about them:

NEXTDC Ltd (ASX: NXT)

The first ASX growth share to look at is NEXTDC. It appears perfectly positioned to benefit from the cloud computing boom thanks to its position as one of the region’s leading data centre-as-a-service providers.

From its 11 world class centres in key locations across Australia, NEXTDC provides colocation services to local and international organisations. 

Pleasingly, NEXTDC is now looking to expand into other potentially lucrative markets after opening up offices in Singapore and Tokyo. If the company makes a success of this, it could give it a long runway for growth over the 2020s.

UBS is a fan of the company. It currently has a buy rating and $15.40 price target on its shares. This compares to the latest NEXTDC share price of $11.05.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

Temple & Webster has been growing at a strong rate over the last few years and particularly during COVID-19. This was thanks to the shift to online shopping.

The good news is that this shift is still in its infancy for furniture and homewares. This gives the company a very long runway for growth, particularly given its leadership position.

Management is now investing heavily to take take advantage of the shift and cement its position as the market leader. While this will come at the expense of margins, the long term gains make it more than worthwhile.

Morgan Stanley certainly believes this will be the case. The broker currently has an overweight rating and $15.00 price target on its shares. This compares to the latest Temple & Webster share price of $10.06.

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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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended 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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