The S&P/ASX 200 Index (ASX: XJO) is not only home to banking and mining giants, it hosts a number of shares that could grow rapidly over the 2020s.
Three which have been tipped to do this are listed below. Here's why these ASX 200 growth shares have been named as buys:
Afterpay Ltd (ASX: APT)
The first ASX 200 growth share to look at is Afterpay. This buy now pay later (BNPL) focused payments company has been tipped to continue its explosive growth in the coming years. This is due to the increasing popularity of BNPL with consumers, growing repeat usage, its international expansion, and new product launches. The latter includes the Afterpay Money app which will soon be launched in Australia and its pay anywhere offering in the United States. The pay anywhere offering gives US consumers access to many of the largest retailers in the country, covering almost half of all ecommerce volume.
Macquarie is positive on the company's growth prospects. Particularly given those upcoming product launches. Earlier this month the broker put an outperform rating and $140.00 price target on its shares.
IDP Education Ltd (ASX: IEL)
Another ASX 200 growth share to look at is IDP Education. It is a provider of international student placement and English language testing services. Although trading conditions have been tough because of the pandemic, it is being tipped to come out the other side in a stronger position. It has also recently made a key acquisition in India, which makes it the dominant language testing force in the lucrative market.
Goldman Sachs believes the company's growth will accelerate post-pandemic. The broker also notes that it has plenty of opportunities to boost its growth with further earnings accretive acquisitions. Goldman currently has a buy rating and $35.00 price target on IDP Education's shares.
Kogan.com Ltd (ASX: KGN)
A final ASX 200 growth share to look at is Kogan. This ecommerce company may have been struggling with inventory issues and slowing sales in the second half of FY 2021, but its future remains as bright as ever. This could potentially mean the recent weakness in the Kogan share price is a buying opportunity.
Credit Suisse certainly thinks it is. It currently has an outperform rating and $17.93 price target on its shares. The broker feels that investors should look beyond the short term issues and focus on its strong long term growth potential from the structural shift to online shopping and its strong market position.
