If you’re currently looking for growth shares to buy, then you might want to look at the two listed below.
Here’s why these ASX 200 growth shares could be in the buy zone right now:
IDP Education Ltd (ASX: IEL)
The first ASX 200 growth share to look at is IDP Education. It is a provider of international student placement and English language testing services at home and overseas.
The company has recently strengthened its international operations with a key acquisition in India. It has agreed to acquire the British Council’s Indian International English Language Testing System (BC IELTS India) operations for 130 million pounds (~A$240 million).
This transaction is estimated to be approximately 13% earnings per share accretive (pre-synergies) on a pro forma calendar year 2019 basis. Management also sees scope for material combination benefits, with estimated run-rate synergies of A$6 million to A$8 million expected to be delivered within 24 months of completion.
And while trading conditions remain tough because of the pandemic, demand is expected to rebound quickly once the situation improves. As a result, analysts at Goldman Sachs believe the company’s growth will accelerate post-pandemic. In addition, the broker sees plenty of opportunities for the company to boost its growth with further earnings accretive acquisitions.
Goldman Sachs currently has a buy rating and $35.00 price target on IDP Education’s shares.
Kogan.com Ltd (ASX: KGN)
Another ASX 200 growth share to look at is Kogan. This ecommerce company was one of the highlights of 2020, but has been the complete opposite in 2021. This has been driven by management failing to predict a sharp slowdown in sales after physical stores reopened, leaving the company with a significant inventory excess.
While this is disappointing, these issues are only expected to be short term. In addition to this, the recent lockdowns across several Australian states could boost sales and help Kogan work through its inventory quicker than expected.
One broker that sees the recent weakness in the Kogan share price as a buying opportunity is Credit Suisse. It currently has an outperform rating and $17.93 price target on its shares.
Credit Suisse feels that investors should look beyond the short term issues and focus on its long term growth potential. This is thanks to its exposure to the structural shift to online shopping.