Why Zip (ASX:Z1P) and these growth shares could be buys

Here are three growth shares rated highly…

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With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To narrow things down, I have picked out three options that are highly rated to consider:

Pushpay Holdings Group Ltd (ASX: PPH)

The first growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. Thanks to the digitisation of the church, the shift to a cashless society, and its industry-leading technology, Pushpay has been growing at a rapid rate in recent years. For example, in FY 2021 the company reported a 40% increase in operating revenue to US$179.1 million and a 133% increase in EBITDAF to US$58.9 million. Looking ahead, management is forecasting further growth in FY 2022 and is planning to expand into a new market. It also just announced the acquisition of Resi Media for US$150 million. This will allow Pushpay to offer digital streaming options to its customers.

Jarden currently has a buy rating and NZ$2.10 (A$2.00) price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another growth share to consider is Temple & Webster. Australia’s leading online furniture and homewares retailer has also been growing at a strong rate over the last few years. This has been driven by the shift to online shopping and its strong market position. And while Temple & Webster’s growth may moderate now that COVID tailwinds are easing, management remains very confident in its long term growth prospects. This is due to its strong position in a category which is only really beginning to see sales shift online.

Morgan Stanley is positive on the company’s outlook. It currently has an overweight rating and $16.00 price target on its shares.

Zip Co Ltd (ASX: Z1P)

A final ASX growth share to look at is Zip. This buy now pay later (BNPL) provider is another company that has been growing at a strong rate. This has been underpinned by its international expansion, the increasing popularity of the payment method, the shift online, and declining credit card use. The good news is that there’s still a massive global market opportunity for Zip to grow into. This could include the Indian market. This week the company made a strategic investment in India via ZestMoney. Management notes that the India market is forecast to have US$300 billion+ in BNPL payment volume by FY 2026.

Analysts at Citi currently have a buy rating and $7.95 price target on its shares.

Should you invest $1,000 in Zip right now?

Before you consider Zip, you'll want to hear this.

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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 PUSHPAY FPO NZX, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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