If you're a growth investor, then you're in luck. The local share market is home to a number of companies that have the potential to grow strongly in the future.
Three top ASX growth shares that have been tipped as buys are listed below. Here's why they are highly rated:
Breville Group Ltd (ASX: BRG)
The first growth share to look at is Breville. This appliance manufacturer has been an outstanding performer over the last decade. During this time, the Breville share price has absolutely smashed the market thanks to consistently solid sales and earnings growth. Positively, the company appears well-placed to continue this positive form over the next decade. This is due to acquisitions, favourable consumer trends, and its global expansion.
UBS is a big fan of Breville and feels it is well-placed for growth. It currently has a buy rating and $35.70 price target on its shares.
NEXTDC Ltd (ASX: NXT)
Another growth share to look at is NEXTDC. It is a leading data centre operator which has been growing at a rapid rate for a number of years. This has been driven by the quality of its data centres and the structural shift to the cloud. The latter is underpinning a surge in demand for data centre capacity, leading to strong revenue and operating earnings growth. Positively, a significant amount of its future capacity is already contracted, which will underpin further top line growth over the next few years. This should be boosted by potential expansions into the Singapore and Tokyo markets in the near future.
Morgan Stanley is bullish on NEXTDC. It currently has an overweight rating and $14.60 price target on its shares.
Zip Co Ltd (ASX: Z1P)
A final growth share to look at is this buy now pay later (BNPL) provider. There's no getting away from the fact that the BNPL payment method is shaking up the payments industry. And while Zip wasn't necessarily the first mover, it was early enough to have cemented a strong position in the rapidly growing industry. This is particularly the case in the United States with its QuadPay business. The good news is that this business still has a very long runway for growth over the next decade and beyond. Management estimates that the US market is worth $5 trillion a year. This should be supported by its core ANZ operation, its recently launched UK business, and further geographic expansion.
Morgans is positive on Zip. The broker currently has an add rating and $10.39 price target on its shares.
