3 top ASX growth shares rated as buys

Here are three buy-rated growth shares…

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There are a lot of growth shares for investors to choose from on the Australian share market.

To narrow things down, I have picked out three ASX growth shares that are highly rated. Here's what you need to know about them:

a happy investor with a wide smile points to a graph that shows an upward trending share price

Image source: Getty Images

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. The appliance manufacturer has been a very strong performer this year thanks to favourable tailwinds brought about by COVID-19. These include more cooking and working at home and a redirection in consumer spending. This led to Breville reporting a 28.8% increase in first half revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million. More of the same is expected in the second half, which should be boosted further by recent acquisitions and its ongoing international expansion.

UBS has a buy rating and $35.70 price target on its shares.

ELMO Software Ltd (ASX: ELO)

Another ASX growth share to look at is ELMO. It is a HR and payroll platform provider that continues to grow strongly even during the pandemic. ELMO's platform allows businesses to simplify and streamline a wide range of tasks. It has also just launched a new Experiences module, which facilitates smooth, efficient employee journeys through key life cycle stages. Management expects this to broaden its convergent solution and strengthen its customer offering.

Morgan Stanley currently has an overweight rating and lofty $9.70 price target on ELMO's shares.

IDP Education Ltd (ASX: IEL)

A final ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. As you might expect, it was hit hard by the pandemic. Positively, IDP Education has been tipped to win market share and resume its rapid growth once the crisis passes and trading conditions return to normal. It will also be boosted by a major acquisition in India that makes it the dominant force in the key market.

Macquarie is bullish on IDP Education. Its analysts currently have an outperform rating and $32.60 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Elmo Software and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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