2 outstanding ASX growth shares named as buys

These growth shares could be in the buy zone…

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If you鈥檙e looking for some growth shares to add to your portfolio this month, then you may want to look at the ones below.

Here鈥檚 what you need to know about these highly rated ASX growth shares:

Life360 Inc聽(ASX: 360)

The first ASX growth share to look at is Life360. It operates in the digital consumer subscription services market, with a focus on products and services for digitally native families, where all members of the household are connected by smartphones.

The company鈥檚 key offering is the increasing popular Life360 app. This app has been developed for families with features such as communications, driving safety, and location sharing. At the last count, the company鈥檚 Global Monthly Active User (MAU) base stood at a massive 32.3 million. In addition, Life360 has also just expanded into the wearables market via the acquisition of Jiobit. This gives it cross-selling opportunities to its large subscriber base.

The team at Bell Potter are very positive on Life360. As a result, they currently have a buy rating and $10.75 price target on its shares.

NEXTDC Ltd聽(ASX: NXT)

Another ASX growth share to look at is NEXTDC. It is one of the Asia-Pacific region鈥檚 leading data centre operators. Due to strong demand for data centre capacity, which is being driven by the structural shift to the cloud, NEXTDC has been growing its sales and operating earnings at a solid rate.

For example, in FY 2021 the company reported a 23% increase in data centre services revenue to $246.1 million and a 29% jump in EBITDA to $134.5 million.

Pleasingly, this strong demand isn’t expected to soften any time soon. As a result, management is guiding to revenue growth of 16% to 20% and EBITDA growth of 19% to 23% in FY 2022.

And one leading broker doesn鈥檛 expect its growth to stop there. A note out of Goldman Sachs reveals that its analysts are expecting NEXTDC to continue to grow its EBITDA at ~20% per annum through to FY 2024.

In light of this, the broker has a conviction buy rating and $14.40 price target on its shares.

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. 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.

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