2 excellent ASX growth shares rated as buys this month

Altium Limited (ASX:ALU) and this ASX growth share could be two the best options for growth investors in May. Here’s why…

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If you’re a fan of growth shares, then you might want to take a look at the ones listed below.

Here’s why these quality ASX growth shares have been tipped as ones to buy right now:

Altium Limited (ASX: ALU)

This electronic design software provider could be a growth share to look closely at. As well as being the company behind the Altium Designer and Altium 365 platforms, it also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.

All these businesses have exposure to the growing internet of things and artificial intelligence markets. And as these markets are underpinning an explosion in electronic devices globally, demand for Altium’s offering looks likely to increase materially in the future. Especially given how its platforms are widely regarded as the best in the industry by some distance.

One broker that is positive on the company’s future is Citi. Late last month the broker put a buy rating and $33.50 price target on Altium’s shares. It suspects that the company is nearing the end of its COVID-19 related downgrade cycle and remains positive on the long term.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX growth share to look at is Pushpay. It is a leading donor management and community engagement platform with a focus on the faith sector.

It has been growing strongly in recent years but still has an enormous runway for growth. For example, management has set itself a target of winning 50% of the medium to large US church market in the future. This represents US$1 billion in revenue, which is almost 8 times greater than FY 2020’s revenue.

Pleasingly, it looks well-positioned to achieve this thanks to its industry-leading platform. This platform was also bolstered by the acquisition of US$87.5 million church management system provider Church Community Builder last year.

This has led to the launch of ChurchStaq, which is the amalgamation of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and church management software (ChMS) to deliver a fully integrated engagement platform.

Goldman Sachs is positive on Pushpay and believes it is well-placed for long term growth. The broker has a buy rating and ~$2.59 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 PUSHPAY FPO NZX. 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 PUSHPAY FPO NZX. 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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