There are a lot of growth shares out there for investors to choose from. To narrow things down, I have picked out two that analysts love.
Here's why analysts rate these growth shares highly:
Bapcor Ltd (ASX: BAP)
The first ASX growth share to look at is Bapcor. It is the Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions. It is also the name behind a number of retail brands such as Autobarn, Burson Auto Parts and Midas.
Bapcor has been performing very strongly in FY 2021. This has been driven by strong demand for used cars, which has resulted in elevated sales across its brands.
Positively, the company looks well-placed to continue its growth in the future. This is thanks to its strong market position and bold expansion plans. Those plans see Bapcor aiming to increase its store network by more than 694 new stores over the next five years. This includes both at home and in the Asia market.
Citi is very positive on the company. It currently has a buy rating and $9.55 price target on the company's shares.
TechnologyOne Ltd (ASX: TNE)
Another 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 that transforms business and makes life simple for its customers.
The company's integrated enterprise SaaS solution is easy to use and available on any device, anywhere and anytime. Management notes that over 1,200 leading corporations, government agencies, local councils and universities are powered by this software.
This has supported very strong recurring revenue growth in recent years and is expected to continue doing so over the coming years. For example, management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is over double its current base of $233 million.
One broker that is very positive on TechnologyOne is Morgans. It currently has an add rating and $10.00 price target on its shares. Morgans believes TechnologyOne can achieve its FY 2026 aspirational ARR target.
