If you're a growth investor, then you're in luck. The local share market is home to a number of top companies that have the potential to grow strongly in the future.
Two top ASX growth shares that have been tipped as buys are listed below. Here's why they are highly rated:
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IDP Education Ltd (ASX: IEL)
IDP Education is a provider of international student placement and English language testing services. While it has been hit hard by the pandemic, it has been tipped to come out of the crisis in an even stronger market position. This could make it a big winner when trading conditions return to normal. Particularly given its investment in software, which appears to have given it another edge over the competition.
Last week analysts at Morgans put an add rating and $28.48 price target on the company's shares. While the broker acknowledges that the awful COVID-19 outbreak in India is a headwind, it still believes the risk is to the upside for its earnings. This is due to pent-up demand and marger and acquisition opportunities.
ResMed Inc. (ASX: RMD)
Another growth share to look at is ResMed. This sleep treatment-focused medical device company has been growing at a solid rate for a decade. And thanks to its industry-leading products, growing software business, and the increasing awareness of sleep disorders, it looks well-placed to continue this trend over the next 10 years.
Particularly given its long runway for growth. Management estimates that there are ~1 billion people suffering from sleep apnoea worldwide, with only ~20% of these sufferers currently diagnosed. ResMed also appears well-placed to benefit from the shift to home healthcare thanks to its investments in the space.
Credit Suisse is a fan of ResMed. It recently put an outperform rating and $29.00 price target on its shares.
