2 stellar ASX growth shares rated as buys

Analysts think these ASX growth shares are in the buy zone…

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If you鈥檙e a growth investor looking for some new ideas, then you might want to look at the shares listed below.

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

Hipages Group Holdings Ltd聽(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 connecting tradies with residential and commercial consumers for job leads.

Hipages has been growing strongly over the last couple of years thanks to the increasing popularity of its platform with both tradies and consumers. This has underpinned strong recurring revenues, with the company finishing FY 2021 with monthly recurring revenue (MRR) of $5.2 million. This was 27% higher year on year and annualises to $62.4 million.

The good news is that the company is still scratching at the surface of its market opportunity. The team at Goldman Sachs highlights that Hipages currently captures less than 1% of a total $97 billion tradie business spend.

The broker is very bullish on the company鈥檚 future. It has a buy rating and $4.35 price target on its shares.

Life360 Inc聽(ASX: 360)

Another ASX growth share to look at is Life360. It is the rapidly growing technology company behind the popular Life360 mobile app. This market leading app for families offers a range of features such as communications, driver safety, and location sharing.

At the end of the first half, the company鈥檚 Global Monthly Active User (MAU) base had reached 32.3 million. This was up by 4 million users since the end of the first quarter, which demonstrates just how quickly it is growing.

This led to Life360 surpassing US$100 million of annualised monthly revenue, which positions it to deliver another stellar full year result later this year.

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.

Bell Potter is a fan of the company. It currently has an outperform rating and $10.75 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. and 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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