The Australian share market is home to a good number of companies that are growing at a quick rate.
Two ASX shares that are growing particularly quickly are listed below. Here's why they have been rated as buys recently and could be top options for growth investors:
Nitro Software Ltd (ASX: NTO)
The first ASX growth share to look at is Nitro Software. It provides document productivity software, including PDF productivity, eSigning workflow, and analytics solutions.
The key product in its portfolio is the Nitro Productivity Suite. This PDF productivity solution is highly scalable, serving large multinational enterprises and government agencies, as well as small businesses and individual users. It has been growing in popularity in recent years and is underpinning significant recurring revenue growth.
For example, in FY 2020 the company reported a 64% increase in annualised recurring revenue (ARR) to $27.7 million. Looking ahead, more strong growth is expected in FY 2021. Nitro has provided guidance for ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.
Morgan Stanley has an overweight rating and $3.70 price target on the company's shares. It sees opportunities for Nitro to upsell and cross sell in the enterprise channel.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is Australia's leading online furniture and homewares retailer.
As with Nitro, Temple & Webster has been growing very strongly in recent years. This has been driven by its leadership position and the ongoing shift to online shopping. Positively, online furniture shopping is still only really getting started in Australia. Particularly in comparison to other Western markets, which have significantly greater online penetration rates.
Management is now preparing for this shift to accelerate and is investing heavily to cement its position as the market leader.
Credit Suisse currently has an outperform rating and $12.54 price target on its shares. It sees scope for the furniture industry to reach ~13% in online penetration by FY 2025.
