2 excellent ASX growth shares tipped as buys

Looking for growth? Look no further…

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ASX shares profit upgrade chart showing growth

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If you’re looking for some growth shares to add to your portfolio next week, then the two listed below might be worth considering.

Here’s why these ASX growth shares have been rated as buys recently:

Afterpay Ltd (ASX: APT)

This buy now pay later (BNPL) focused payments company has been growing at a rapid rate in recent years. This has been driven by the increasing popularity of BNPL with consumers and merchants and its global expansion.

After dominating the ANZ market, the company successfully launched in the United States in the middle of 2018. Three years later it has 9.3 million active customers in the North American market. This equates to almost two-thirds of its total active customers of 14.6 million.

Pleasingly, this is still only a fraction of its market opportunity in North America, giving it a long runway for growth in the region. This should be supported by the company’s recent expansion onto mainland Europe and its probable entry into the Asian market in the future.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $145.00 price target on Afterpay’s shares.

Breville Group Ltd (ASX: BRG)

Breville is one of the world’s leading appliance manufacturers. It has been growing its sales and profits at a strong rate over the last few years and has continued this in FY 2021.

For example, during the first half, Breville reported a 28.8% increase in revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million.

This was driven by a combination of favourable tailwinds brought about by COVID-19, such as working from home and more dining in, and its global expansion.

One broker that appears confident that its strong growth can continue is UBS. Its analysts recently put a buy rating and $35.70 price target on its shares.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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