Investors looking for growth options might want to look at the shares listed below.
Here's why a leading broker is tipping them as buys right now:
Hipages Group Holdings Ltd (ASX: HPG)
Hipages is a leading Australian-based online platform and software as a service (SaaS) provider. The company's platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals.
The company also offers tradies its Call of Service job management software, which improves their productivity by streamlining their workflow and taking away the stress of doing admin.
Last week, analysts at Goldman Sachs retained their buy rating and lifted their price target to $3.40. The broker has been impressed with its form in recent months, which is supporting its bullish sentiment.
It commented: "Momentum is being maintained on the consumer side of the marketplace with monthly website visits up +21% YoY. The combined effect of tradie and consumer growth is an increase in the number of jobs posted per tradie rising over the forecast period from c.36 in FY20 to c.53 by FY23E. Growth in this metric is a key indicator of marketplace balance and demonstrates the value tradies are deriving from the platform. This is a key driver of our forecast 11% CAGR in ARPU."
Xero Limited (ASX: XRO)
Another ASX growth share to look at is Xero. It is a leading cloud-based full-service business and accounting solution provider which has been growing at a rapid rate in recent years.
This continued in FY 2021 despite the pandemic's impact on small businesses across the world. For example, in May the company released its full year results and revealed an 18% increase in revenue to NZ$848.8 million.
This was driven by a 20% increase in subscribers to 2.74 million. This comprises ANZ subscribers of 1.56 million and international subscribers of 1.18 million. And while this may be a large number, it is only a fraction of a cloud accounting subscriber total addressable market estimated at 45 million. This gives it a long runway for growth in the future.
Goldman Sachs is also very positive on Xero's future. Thanks to its international expansion, the ongoing shift to the cloud, and the monetisation of its app ecosystem, it believes the company could have a multi-decade runway for growth. The broker has a buy rating and $153.00 price target on its shares.
