There are a lot of options for investors to choose from on the Australian share market.
Two that could be worth getting better acquainted with are listed below. Here's what you need to know about these growing companies:
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Nearmap Ltd (ASX: NEA)
The first ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in Australia and North America. Nearmap's products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.
Last week the company released its full year results and revealed annual contract value (ACV) grow of 26% to $128.2 million. This was driven by strong growth in its North American business, which reported ACV of US$44.5 million. This was up 54% from US$28.8 million a year ago.
Looking ahead, while no guidance was given with its results, management has a long term growth target in place. This is for ACV growth of 20% to 40% per annum, with underlying churn of less than 10%.
Morgan Stanley remains very positive on the company. Last week it retained its overweight rating and $3.20 price target on the company's shares. This compares to the latest Nearmap share price of $2.10.
NEXTDC Ltd (ASX: NXT)
Another ASX growth share to look at is NEXTDC. It is Australia's leading data centre operator with an expanding collection of world-class centres located across the country. But it isn't settling for that, the company is currently looking to enter both the Singapore and Tokyo markets. If this expansion is a success, it could provide NEXTDC with a huge market opportunity to grow into.
In the meantime, NEXTDC continues to generate significant revenue and earnings in the local market. For example, during the first half of FY 2021, the company posted a 27% increase in data centre services revenue to a record $121.6 million and a 29% increase in EBITDA to $65.7 million. This was underpinned by a 33% lift in contracted utilisation to 71MW, a 16% lift in customers, and a 16% rise in interconnections.
The good news is that later this month a similarly strong full year result is expected to be announced. And with a large amount of its future capacity additions already contracted, this positive form looks set to continue for the foreseeable future.
UBS is bullish on NEXTDC. Its analysts currently have a buy rating and $15.40 price target on its shares. This compares to the latest NEXTDC share price of $13.62.
