If you're a fan of growth shares like I am, then you may want to look closely at the three shares listed below.
Here's why these could be growth shares to buy:
Hipages Group Holdings Ltd (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. The Hipages platform connects consumers with over 34,000 trusted tradies (and growing) across Australia. In FY 2021, the company reported a 12% increase in job volumes to 1.53 million and a 22% increase in full year revenue to $55.8 million. This is still only a fraction of its total addressable market which is estimated to be $110 billion across the residential and commercial sectors.
Goldman Sachs is very bullish on its growth prospects. It currently has a buy rating and $4.35 price target on its shares.
PointsBet Holdings Ltd (ASX: PBH)
Another ASX growth share to look at is PointsBet. It is a sports betting and iGaming provider with operations in the ANZ and US markets. Like Hipages, PointsBet was on form again in FY 2021. For the 12 months ended 30 June, it reported a 228% increase in full year turnover to $3,781.4 million. This was driven by a 117% increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321. More of the same is expected in FY 2022 thanks to the growing popularity of mobile sports betting, innovative products, and its continued US expansion.
Goldman Sachs is also very positive on PointsBet due to its massive opportunity in the US market. The broker has a buy rating and $14.75 price target on its shares.
Temple & Webster Group Ltd (ASX: TPW)
A final growth share to consider is Temple & Webster. Australia's leading online furniture and homewares retailer was on form again in FY 2021 and continued its meteoric growth. For the 12 months, the company reported a 62% year on year increase in customer numbers to 778,000. Combined with increased repeat purchases, this underpinned an 85% increase in revenue to $326.3 million. Positively, Temple & Webster still has a long runway for growth over the next decade. This is due to increasing online penetration rates and its leadership position online. The company estimates that in 2020 just 7% to 9% of category sales were made online. This compares to 25.3% in the US in 2020.
The team at Morgan Stanley are very positive on the company's outlook. Its analysts currently have an overweight rating and $16.00 price target on its shares.
