Why Zip (ASX:Z1P) and this fantastic ASX growth share could be buys

These ASX shares could be in the buy zone…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Looking for growth shares to buy? Then you might want to consider the two listed below.

Here's why they have been tipped as growth shares to buy:

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

Image source: Getty Images

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX growth share to look at is this leading Australian-based online platform and software as a service (SaaS) provider. Hipages' increasingly popular platform connects consumers with trusted tradies to simplify home improvement. It was on form in FY 2021, reporting a 22% year on year jump to $55.8 million. This was ahead of its guidance for the year. It also reported a 27% increase in its monthly recurring revenue (MRR) to $5.2 million. This annualises to $62.4 million.

This went down well with analysts at Goldman Sachs. In response they have retained their buy rating and lifted their price target to $4.35. It notes that Hipages currently captures <1% of a total $97 billion tradie business spend, representing a meaningful opportunity for growth.

Zip Co Ltd (ASX: Z1P)

A final ASX growth share to look at is Zip. This leading buy now pay later (BNPL) provider appears well-placed for growth over the 2020s due to its international expansion and the increasing popularity of the payment method with consumers and merchants. As well as having a $5 trillion market opportunity in the United States, the company has been expanding into the lucrative European and Asian markets through acquisitions. Combined, this gives Zip a significantly long runway for growth.

The team at Morgans remains very positive on Zip. In response to its recent full year results, the broker retained its add rating and lifted its price target to $8.87. This compares very favourably to the latest Zip share price of $6.90. Morgans continues to see longer term upside if Zip can execute on its ambitions of becoming a global payments player.

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 Hipages Group Holdings Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A couple are happy sitting on their yacht.
Growth Shares

What are the best Australian shares to buy now to try and make a million?

Looking to build wealth over the long-term? These shares could help.

Read more »

Purple tech growth chart.
Growth Shares

2 wonderful ASX All Ords stocks I'd buy today

These stocks could deliver great returns. Here’s why…

Read more »

Cheerful man in a orange shirt standing in front of an audience holding a tablet and using hand gestures to interact with the audience.
Growth Shares

3 amazing ASX growth shares that continue to stand out

Looking for growth options? Here are three to consider.

Read more »

Person pointing finger on on an increasing graph which represents a rising share price.
Growth Shares

2 ASX shares tipped to grow at least 50% in the next 12 months

These stocks could be some of the best ones to own today.

Read more »

Scared looking people on a rollercoaster ride representing volatility.
Growth Shares

What's driving the wild swings in Telix shares?

The ASX biotech stock offers high-growth potential, but it comes with volatility.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Growth Shares

3 stellar ASX growth shares to buy now with 30% to 70% upside

Analysts have buy ratings and lofty price targets on these shares.

Read more »

Person using a calculator with four piles of coins, each getting higher, with trees on them.
Growth Shares

2 ASX shares that I rate as buys today for both growth and dividends!

These businesses have plenty going for them. I’m calling them buys…

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Share Market News

NextDC shares rocket 27% higher: Buy, hold or sell?

Can NextDC shares keep climbing higher, or have they now peaked?

Read more »