The Australian share market is home to a number of quality companies with solid growth prospects.
Two that have been tipped to grow strongly over the long term are listed below. Here's why analysts think investors should be buying their shares:
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NEXTDC Ltd (ASX: NXT)
The first ASX growth share to look at is NEXTDC. It has a growing collection of world class data centres across Australia and a rich partner ecosystem. The latter comprises over 660 clouds, networks, and ICT specialty services.
The company isn't settling for that, though. It recently announced plans for a fourth data centre in Sydney and is looking to expand its offering into both Singapore and Tokyo, which offer huge market opportunities.
After a strong performance in the first half, more of the same is expected in the second. This is being driven by the ongoing shift to the cloud, which is underpinning very strong demand for capacity in its centres. So much so, a good portion of its planned capacity additions have already been contracted.
One leading broker that is particularly positive on NEXTDC is Goldman Sachs. Its analysts currently have a conviction buy rating and $14.80 price target on its shares. Goldman is forecasting a 24% increase in revenue to $250 million in FY 2021.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is Australia's leading online furniture and homewares retailer.
Temple & Webster recently released its full year results and revealed record revenue, profits, and customer numbers. For the 12 months ended 30 June, the company reported an 85% increase in revenue to $326.3 million and a 141% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $20.5 million.
And while Temple & Webster's growth may moderate when COVID tailwinds are easing, management remains very confident in its growth prospects. This is due to its strong position in a market which is still only beginning to see sales shift online. It is also investing heavily in order to take full advantage of the shift and grow its market share.
One leading broker that is very positive on Temple & Webster is Morgan Stanley. It has an overweight rating and $16.00 price target on its shares.
