If you’re looking for some growth shares to add to your portfolio, then you might want to look at the ones below.
Here’s what you need to know about these highly rated ASX growth shares:
Afterpay Ltd (ASX: APT)
The first ASX growth to look at is Afterpay. This leading buy now pay later (BNPL) focused payments company has been growing at a rapid rate over the last few years. This is thanks to the increasing popularity of the BNPL payment method and its successful international expansion.
The good news is that it still has a very long runway for growth in both existing and new markets. The former includes a $5 trillion opportunity in the United States which is being supported by the launch of its pay anywhere solution. Whereas the latter includes its recent expansion into Europe and its Asia plans.
In addition to this, the upcoming launch of its Money by Afterpay app is expected to be a big boost to its ANZ business. In fact, analysts at Morgan Stanley believe it could help Afterpay double its revenue in Australia.
Overall, the broker believes the company is well-positioned for growth. As a result, this week the broker retained its overweight rating and $145.00 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
Another ASX growth share to look at is TechnologyOne. It is Australia’s largest enterprise software company, providing a global software as a service (SaaS) ERP solution.
Management notes that this integrated enterprise SaaS solution is available on any device, anywhere and anytime and is easy to use. At the last count, over 1,200 leading corporations, government agencies, local councils and universities were powered by its software.
TechnologyOne has been growing its recurring revenues at a strong rate in recent years thanks to the success of this SaaS offering. However, its growth is still only get started. Management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is more than double its current ARR of $233 million.
Morgans is bullish on the company and believes it could achieve its ARR targets. As a result, the broker has put an add rating and $10.00 price target on its shares.