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.
Three top ASX growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:
IDP Education Ltd (ASX: IEL)
The first growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. Although the immediate term will be tough because of the pandemic, it has been tipped to bounce back strongly once the crisis passes. In fact, analysts expect the company to exit the pandemic in a stronger position than when it entered it. As a result, it is being tipped to win market share and resume its rapid growth once trading conditions return to normal. UBS is positive on its future. It recently put a buy rating and $29.05 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 a big winner from the structural shift to the cloud. This shift is underpinning a surge in demand for data centre capacity, underpinning strong revenue and operating earnings growth. Another positive is the significant amount of its future capacity already contracted. This will be billed over the coming years, driving further growth, which could be given an added boost by a probable expansion into the Asian market. Offices have been opened in Singapore and Tokyo, and NEXTDC is actively assessing its options. Morgan Stanley is confident in its growth prospects and has put an overweight rating and $14.60 price target on its shares.
Zip Co Ltd (ASX: Z1P)
A third growth share to consider is this rapidly growing buy now pay later provider. Zip has delivered explosive sales growth in recent years thanks to the increasing popularity of the payment method and its international expansion. This is particularly the case in the massive United States market, where its QuadPay business has really impressed. The good news is that it is still only scratching at the surface in this key market, potentially giving Zip a very long runway for growth over the next decade. This should be supported by its expansion in Europe. Morgans is confident on its future. It recently put an add rating and $10.30 price target on the company’s shares.