2 fantastic ASX growth shares tipped as buys

Looking for growth shares? Look at these…

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Are you looking for growth shares to buy? If you are, you may want to consider the two listed below.

Here’s why these growth shares are highly rated by analysts:

Bapcor Ltd (ASX: BAP)

Bapcor is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions.

It has been growing at a solid rate in recent years and this continued in FY 2021. For example, last month Bapcor released its full year results and reported a 20.4% increase in revenue to $1,761.7 million. Things were even better on the bottom line thanks to margin expansion. The company’s pro forma net profit after tax increased 46.5% to $130.1 million.

This was underpinned by growth across each of Bapcor’s business segments, driven by increased demand from consumers.

And while its guidance for FY 2022 was cautious because of lockdowns, its longer term outlook remains very positive. This is due to its strong market position and domestic and international expansion plans.

Credit Suisse is a fan of Bapcor. The broker currently has an outperform rating and $9.20 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is Australia’s largest online tradie marketplace and software-as-a-service (SaaS) provider connecting tradies with residential and commercial consumers across Australia.

It was also a strong performer in FY 2021. Last month Hipages released its results and revealed a 22% jump in revenue to $55.8 million and a 27% increase in its monthly recurring revenue (MRR) to $5.2 million.

This was underpinned by a 12% increase in job volumes to 1.53 million, a 12% lift in subscriptions to 31,200, and a 29% increase in average revenue per tradie to $1,536.

The good news is that Hipages has a significant market opportunity to grow into. The company commissioned further market research in FY 2021 to find the size of the total addressable market (TAM) of the tradie ecosystem. This research confirmed the TAM to be over $110 billion across the residential and commercial sectors.

Goldman Sachs is very positive on Hipages. It currently has a buy rating and $4.35 price target on the company’s shares.

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

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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 Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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