3 exciting ASX growth shares rated as buys

These growth shares could be worth a few minutes of your time…

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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:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is this gaming technology company. It recently released its half year results which revealed an 18.4% increase in net profit over the prior corresponding period to $362.2 million. This was driven by improving rates of profitability in both the land-based and digital markets and further market share gains. Positively, it looks well-placed for more of the same in the coming years thanks to its industry-leading poker machines and its growing digital business. The latter is generating significant recurring revenues.

Citi is positive on Aristocrat Leisure. Its analysts currently have a buy rating and $46.60 price target on its shares.

Megaport Ltd (ASX: MP1)

Another growth share to look closely at is Megaport. It is a software-based elastic connectivity company providing businesses with a platform that offers customers interconnectivity and flexibility between other networks and cloud providers connected to the platform. Thanks to the quality of its service and the ongoing shift to the cloud, Megaport has been growing its recurring revenues at a solid rate in recent years. Positively, 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 a fan of Megaport. The broker currently has a buy rating and $17.10 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer. It was already growing at a rapid rate prior to the pandemic, but went into overdrive during the crisis. This was due to the accelerating shift to online shopping. Pleasingly, online furniture shopping is still in its infancy in comparison to other areas of the retail market. This bodes well for the future, particularly given Temple & Webster’s leadership position.

Credit Suisse recently initiated coverage on the company with an outperform rating and $12.54 price target.

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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 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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