Here’s why analysts love these ASX growth shares

There’s a good reason that analysts rate these growth shares highly…

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There are a lot of growth shares out there for investors to choose from. To narrow things down, I have picked out two that analysts love.

Here’s why analysts rate these growth shares highly:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. Over the past 80 years, Breville has become an iconic Australian brand, developing high quality and innovative products for kitchens around the world.

The good news is that the leading appliance manufacturer’s growth is not expected to end any time soon. This is thanks to strong demand, favourable industry tailwinds, its international expansion, and its ongoing R&D investment.

One leading broker that is confident that Breville’s strong growth can continue for some time to come is UBS. It is forecasting double-digit sales growth through to at least FY 2023.

In light of this, the broker rates its shares as a buy and has put a $35.70 price target on them.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is Australia’s largest enterprise software company. It provides a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers. Management notes that its integrated enterprise SaaS solution is available on any device, anywhere and anytime and is incredibly easy to use. A testament to this is that over 1,200 leading corporations, government agencies, local councils and universities are powered by its software.

This has underpinned strong recurring revenue growth and is expected to continue doing so over the remainder of the 2020s. So much so, management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is over double its current base ARR of $233 million.

Morgans is very positive on the company and recently put an add rating and $10.00 price target on its shares. It believes TechnologyOne can achieve its aspirational ARR target by FY 2026 based on existing legacy customer migration and new additions.

Should you invest $1,000 in TechnologyOne right now?

Before you consider TechnologyOne, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and TechnologyOne wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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