2 fantastic ASX growth shares that this leading broker loves

Xero Limited (ASX:XRO) and this fantastic ASX growth share have been named as buys by a leading broker…

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Looking for growth shares to buy? Then you might want to consider adding the two listed below to your portfolio.

Here’s why they have been tipped as growth shares to buy:

PointsBet Holdings Ltd (ASX: PBH)

PointsBet could be worth a closer look. This sports betting company has operations in the ANZ and US markets that are growing at a rapid rate.

For example, during the third quarter, the company reported a 236% increase in turnover to $905.2 million. This was driven by a 137% jump in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million.

Also growing strongly was its net win metric, which lifted 246% to $64.9 million for the quarter. This was the result of a 147% increase in Australian net win to $38.2 million and a 716% jump in US net win to $26.7 million.

Goldman Sachs is very positive on the company. Last week its analysts put a buy rating and $17.20 price target on its shares. It believes the company has an enormous opportunity in the rapidly growth US market.

Xero Limited (ASX: XRO)

Xero is another ASX growth share that Goldman Sachs is positive on.

It has been growing at a very strong rate over the last few years. This has been driven by the shift online, its international expansion, and the evolution of its platform into a complete small business solution.

The good news is that Goldman Sachs feels the company can continue this positive form for a long time to come. Its analysts note that Xero is well-placed to deliver multi-decade strong growth thanks to its geographic expansion and the monetisation of its app ecosystem.

In light of this, Goldman is very bullish on the investment opportunity here. As such, it has put a buy rating and $153.00 price target on its shares.

Though, it is worth noting that Xero is due to release its full year results next week. Here’s what Goldman expects the company to report.

Wondering where you should invest $1,000 right now?

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

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 Pointsbet Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended Pointsbet Holdings 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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