2 excellent ASX growth shares named as buys

These growth shares could be in the buy zone…

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If you鈥檙e a fan of growth shares like I am, then you may want to look at the two listed below.

Here鈥檚 why these could be growth shares to buy this month:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers.

The Hipages platform not only helps tradies grow their businesses by providing job leads, but it also allows them to communicate with customers and run general admin duties.

Last month the company released its FY 2021 results and delivered a 22% jump in revenue to $55.8 million. This was ahead of its guidance for the year. In addition, the company revealed that its monthly recurring revenue (MRR) rose 27% year on year to $5.2 million.

Goldman Sachs remains very positive on the company and sees it as a great long term option. It notes that Hipages currently captures around 5% of total industry advertising spend. However, it sees scope for this to increase to 40% to 60% in the future as the company builds out its ecosystem.

The broker currently has a buy rating and $4.35 price target on the company鈥檚 shares.

REA Group Limited (ASX: REA)

Another ASX growth share to look at is REA Group. It is a leading provider of property and property-related services via websites and mobile apps across Australia and Asia.

It is best-known for the realestate.com.au website which is dominating the ANZ market. So much so, during FY 2021, the company revealed that 12.6 million people visited its website each month on average. This led to a 35% increase in average monthly visits to 121.9 million, which was 3.3 times more than its nearest competitor.

This led to the company delivering a 13% increase in revenue to $928 million and a 19% jump in EBITDA to $565 million. The latter was ahead of expectations.

Looking ahead, thanks to its dominant market position, the thriving housing market, and new acquisitions and revenue streams, REA Group appears well-positioned for growth over the 2020s.

The team at Macquarie are very positive on the company鈥檚 outlook. As a result, the broker has an outperform rating and $185.00 price target on its shares.

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. The Motley Fool Australia has recommended REA Group Limited. 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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