If you’re a fan of growth shares then you may want to look at the shares listed below.
These companies have been growing at a solid rate and have been tipped to continue doing so in the future.
Here’s why they are rated as buys:
Bapcor Ltd (ASX: BAP)
The first ASX growth share to look at is Bapcor. It is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions.
Bapcor was a very strong performer in FY 2021. Last month it released its full year results and reported a 20.4% increase in revenue to $1,761.7 million and a 46.5% jump in pro forma net profit after tax to $130.1 million.
Management advised that this was underpinned by increased demand from consumers, which drove solid growth across the business. In fact, each of Bapcor’s business segments delivered an increase in both revenue and earnings during the 12 months.
Looking ahead, management’s guidance for FY 2022 was a touch on the cautious side due to lockdowns. However, beyond this, the company’s outlook looks very positive thanks to its strong market position and bold growth plans.
It is for these reasons that the team at Credit Suisse remain positive on Bapcor. So much so, the broker has an outperform rating and $9.20 price target on the company’s shares.
Xero Limited (ASX: XRO)
Another ASX growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.
Over the last few years, the Xero platform has evolved from a simple accounting solution into a full service small business solution. This has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform, which has underpinned strong revenue and profit growth.
For example, in FY 2021, Xero reported an 18% increase in revenue to NZ$848.8 million and a 39% jump in EBITDA to NZ$191.2 million.
Looking ahead, Xero still has a massive growth runway. This is being driven by the ongoing shift to cloud solutions, its international expansion, and its burgeoning app ecosystem.
Goldman Sachs is very positive on its future. In light of this, it recently retained its buy rating and $165.00 price target on the company’s shares.