If you’re wanting to boost your portfolio with a couple of growth shares, then you may want to consider the ones listed below.
Here’s why these ASX growth shares have been rated as buys:
REA Group Limited (ASX: REA)
The first ASX growth share to look at is REA Group. It is of course the market leader in real estate listings in the Australian market. At the last count, the company’s ANZ websites were commanding more than triple the visits of its nearest rival.
This certainly is a big positive given the current housing market boom, which is driving growth in listing volumes again. Combined with price increases, new revenue streams, and acquisitions, this bodes well for the REA Group’s performance in the second half of FY 2021 and beyond.
The latter includes the recent acquisitions of Mortgage Choice and Simpology, which are expected to allow REA Group to capture a growing slice of the mortgage broking market in the coming years.
Goldman Sachs is very bullish on REA Group. It recent retained its buy rating and lifted its price target to a lofty $198.00.
Another ASX growth share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution.
Over the last few years, Xero has been growing very strongly thanks to a combination of its international expansion, acquisitions, and the transition to the cloud. The good news is that these drivers remain in place, which bodes well for its future.
In addition, although the company recently finished FY 2021 with a sizeable 2.74 million subscribers, this is still only a fraction of its market opportunity. Management estimates that the cloud accounting subscriber total addressable market is 45 million at present.
Goldman Sachs is also bullish on Xero and has a buy rating and $165.00 price target on its shares. The broker believes Xero has a multi-decade growth runway. This thanks to its significant addressable market and opportunities to monetise its app ecosystem.