If you're wanting to boost your portfolio with a couple of growth shares, then you may want to consider the ones listed below.
Here's why these ASX growth shares have been rated as buys:
Breville Group Ltd (ASX: BRG)
The first ASX growth share to look at is Breville. Founded in Sydney in 1932, Breville has grown to become one of the world's leading appliance manufacturers.
The good news is that its growth shows no signs of stopping. This is thanks to its international expansion, R&D investment, and favourable tailwinds. The latter includes the work from home trend, which is underpinning strong demand for cooking equipment and coffee machines.
During the first half of FY 2021, Breville reported a 28.8% increase in revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million. Positively, more of the same is expected in the second half. Management is guiding to earnings before interest and tax of $136 million. This will be a 20% increase year on year.
Analysts at UBS believe its growth can continue for some time to come. As a result, the broker has a buy rating and $35.70 price target on its shares.
Xero Limited (ASX: XRO)
Another ASX growth share to consider is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses globally.
Over the last few years, Xero has been growing at a consistently strong rate. This has been driven by the shift to the cloud, its international expansion, and acquisitions. The latter includes the $284.6 million acquisition of workforce management platform, Planday, earlier this year.
These acquisitions are expected to support the monetisation of its app ecosystem. This is something which Goldman Sachs is particularly positive on. It believes Xero could have a multi-decade runway for strong growth if management can successfully monetise it.
Goldman is very bullish on its future. As such, it has a buy rating and $165.00 price target on its shares.
