2 impressive ASX shares that could be buys in October 2021

These 2 ASX shares could be impressive ideas to consider.

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There are some potentially impressive ASX shares that might be worth considering in October 2021.

Businesses that are growing quickly may be worthwhile looking at because of their long-term potential, if they are able to deliver on their plans.

Companies with international growth potential have much larger addressable markets, which may give them more profit potential.

Here are two ASX shares to consider:

Redbubble Ltd (ASX: RBL)

Redbubble owns and operates two global leading online marketplaces – Redbubble.com and TeePublic.com. It has a community of artists that have created designs that are printed on everyday products such as apparel, stationery, housewares, bags, wall art and so on.

Morgan Stanley currently rates the Redbubble share price as a buy with a target price of $6.50. That suggests the broker believes the company could see a rise of almost 50% of its share price over the next 12 months. Morgan Stanley is attracted to the Redbubble operating model and believes it could become much more profitable in the coming years.

In FY21, the e-commerce business achieved marketplace revenue of $553 million, an increase of 58%. In the next few years, it’s aiming to grow its gross transaction value (GTV) to $1.5 billion, which would lead to marketplace revenue of $1.25 billion per annum.

In the shorter-term, the ASX share is going to invest heavily to achieve growth. Over the longer-term, the increase in users, order rate, average order value and repeat order rate is expected to help improve the profit margins of the business.

In FY22, the earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be in the mid-single digit range and improve in subsequent years with its top line growth.

The company expects to deliver a trading update on 14 October 2021.

Bapcor Ltd (ASX: BAP)

Bapcor already calls itself the largest auto parts in Australasia, but it has plans to become a larger business. COVID-19 is currently impacting the expansion business, but it has outlined plans to extend its market leadership.

The company operates a number of different businesses including Burson, Autobarn and specialist wholesale (such as electrical and commercial vehicles).

At the end of FY21, it had around 1,100 locations and the 5-year target is to increase that to more than 1,500 locations with a large increase in its retail division and creating a material presence in Asia.

The ASX share sees a sizeable opportunity in Asia. It aims to be the most prominent vehicle parts distributor in the Asia Pacific region, with six locations in Thailand and a 25% stake of the Singapore-listed Tye Soon. The Tye Soon business has 60 locations across Asia, notably in South Korea and Malaysia. Burson Thailand will open its seventh location (and more) once COVID restrictions reduce.

There are four areas that Bapcor is investing in to grow the business – driving expansion of its network (including online), supplementing market-leading brands with Bapcor’s own brand products (with higher margins), realising benefits and efficiencies across Bapcor, and investing in its team members.

In FY21, Bapcor grew its revenue by 20.4% and increased the net profit by 46.5% to $130 million. Management attributed the result to improved operating and financial performance across all business segments.

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

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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