If you're interested in adding some growth shares to your portfolio in July, then you may want to look at the ones listed below.
Here's why they have been rated as buys:
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REA Group Limited (ASX: REA)
The first ASX growth share to consider is REA Group. It is of course the dominant player in real estate listings in the Australian market with its realestate.com.au website.
REA Group has been growing at a consistently solid rate over the last decade and has been tipped to continue this trend over the next decade. This is thanks to its strong market position, a booming housing market, international operations, and recent acquisitions.
In respect to acquisitions, REA Group has just announced the completion of its acquisition of Mortgage Choice and a 34% stake in mortgage software company Simpology. This is expected to help REA Group capture a growing share of the mortgage broker market in the coming years.
Analysts at Goldman Sachs are very positive on its outlook. Earlier this week, the broker retained its buy rating and lifted its price target to $198.00. This compares to the current REA Group share price of $165.61.
Zip Co Ltd (ASX: Z1P)
Another ASX growth share to look at is this leading buy now pay later (BNPL) provider. In FY 2021, Zip has been growing at a rapid rate yet again.
For example, after delivering stellar growth in the first half, the company built on this during the third. This was particularly the case in the United States, where its QuadPay business reported third quarter transaction volume growth of 234% to $762 million. This was driven by a 153% increase in US customers to 3.8 million.
Pleasingly, this is still only a very small slice of a US retail market worth an estimated $5 trillion per year. This gives Zip's QuadPay business a very long runway for growth as BNPL adoption rates increase and credit card usage declines. This should be supported by its expansion into Europe and Asia via recent acquisitions.
Morgans is expecting Zip's strong growth to continue. As a result, it has an add rating and $10.39 price target on the company's shares currently. This compares to the latest Zip share price of $7.25.
