3 stellar ASX growth shares rated as buys

There growth shares have been growing quickly and have been tipped to continue doing so in the future…

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With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out three ASX growth shares that could be top options for investors today. Here's what you need to know about them:

A hand holding a graph trending up, indicating a surging share price on the ASX

Image source: Getty Images

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. While trading conditions are difficult right now, they have been improving. Furthermore, the longer the pandemic drags out, the stronger its market position will be at the end of it. This is due to many of its smaller competitors failing to survive the crisis. Morgans is expecting IDP Education to grow its market share meaningfully once the pandemic passes. As a result, it remains very positive on the company. The broker recently put an add rating and $28.48 price target on its shares.

Megaport Ltd (ASX: MP1)

Another growth share to look closely at is Megaport. It is an elasticity connectivity and network services company. Megaport's service utilises software defined networking (SDN) to allow customers to rapidly connect their network to other services across the Megaport Network. This means that services can be directly controlled by customers via mobile devices, their computer, or its open API. This has proven very popular with businesses, leading to Megaport growing its recurring revenues at a rapid rate over the last few years. Pleasingly, this has continued in FY 2021. It recently released its third quarter update and revealed an 8% quarter on quarter increase in monthly recurring revenue (MRR) to $6.8 million. UBS is positive on the company. The broker currently has a buy rating and $17.10 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is an online furniture and homewares retailer. With online furniture shopping still in its infancy in comparison to other areas of the retail market, Temple & Webster appears well placed for growth over the long term. Particularly given its leadership position. Management recently revealed that it plans to invest heavily to take advantage of the shift and cement its position as the market leader. Morgan Stanley was happy with this plan. It currently has an overweight rating and $15.00 price target on its shares.

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 and has recommended Idp Education Pty Ltd, MEGAPORT FPO, and Temple & Webster Group Ltd. The Motley Fool Australia has recommended MEGAPORT FPO 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.

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