If you're looking for growth shares, then look no further. Listed below are two ASX growth shares which have been tipped for strong growth in the future.
Here's why analysts have rated them as buys:
NEXTDC Ltd (ASX: NXT)
The first ASX growth share for investors to consider is NEXTDC. From a collection of Tier III and Tier IV data centre facilities in key locations across Australia, NEXTDC provides colocation services to local and international organisations.
Over the last decade, NEXTDC has been growing its sales and operating earnings at a consistently strong rate. This has been driven by increasing demand for its data centre services thanks to the structural shift to the cloud.
The good news is that demand continues to grow as the shift accelerates. So much so, NEXTDC is bringing forward capacity additions and new centre developments to meet it. In addition, the company sees an opportunity to expand into the Asian market and has opened up offices in Singapore and Tokyo.
Goldman Sachs is very positive on the company's outlook. It believes NEXTDC will grow its EBITDA by ~20% per annum through to at least FY 2024.
Its analysts have a buy rating and $14.40 price target on the company's shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is one of Australia's leading online retailers with a focus on furniture and homewares.
As with NEXTDC, Temple & Webster has been growing at a strong rate in recent years and appears well-placed to continue this trend in the years to come. This is particularly the case given the ongoing shift to online shopping.
Analysts at Credit Suisse are confident in the company's future. The broker currently has an outperform rating and $15.73 price target on Temple & Webster's shares.
Credit Suisse has previously revealed that it sees scope for online furniture sales to account for 13% of industry sales by FY 2025. And due to its leadership position, this bodes well for the company's growth over the next few years.
