2 ASX shares with strong long term growth potential

Nanosonics Ltd (ASX:NAN) and this ASX growth share have buy ratings on them. Here’s why they could be good additions to your portfolio…

| More on:
Iluka share price 3D white rocket and black arrows pointing upwards

Image source: Getty Images

If you’re looking at following in the footsteps of Warren Buffett by making buy and hold investments, then you might want to look at the shares listed below.

Both have strong market positions and long runways for growth over the next decade. Here’s what you need to know:

Nanosonics Ltd (ASX: NAN)

Nanosonics is a healthcare technology company with a focus on infection control. 

The company currently derives all of its revenue from its trophon EPR disinfection system for ultrasound probes. This technology is regarded as the best in its class and has been growing its market share in the United States and globally consistently each year over the last decade.

Chances are, if you’ve ever had an ultrasound, you’ve been protected by this technology. Management estimates that every day 80,000 patients are protected from the risk of cross contamination because the ultrasound probe has been high-level disinfected with trophon. And the good news is that despite how well it cleans probes compared to rival products, it is environmentally friendly. 

Looking to the future, the company is aiming to expand its portfolio in the coming years with the launch of new products targeting unmet needs. These are understood to have similar addressable markets, which will provide Nanosonics with a very long runway for growth if successful.

UBS currently has a buy rating and $7.00 price target on its shares

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to consider buying is Temple & Webster. It is one of Australia’s leading online retailers with a focus on furniture and homewares.

Temple & Webster has been growing at a rapid rate in recent years and appears well-placed to continue this trend in the years to come. Especially given the shift to online shopping, which is still only getting started for furniture and homewares.

Analysts at Credit Suisse are confident in the company’s future. They recently initiated coverage on Temple & Webster with an outperform rating and $12.54 price target.

The broker sees scope for online furniture sales to account for 13% of industry sales by FY 2025. And given its clear leadership position, this bodes well for its growth over the next few years.

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

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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 Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares