3 exciting ASX growth shares analysts love

Analysts rate these ASX growth shares highly…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a lot of growth shares for investors to choose from on the Australian share market.

To narrow things down, I have picked out three ASX growth shares that are highly rated. Here's what you need to know about them:

Big green letters spell growth, indicating share price movements for ASX growth shares

Image source: Getty Images

ELMO Software Ltd (ASX: ELO)

The first ASX growth share to look at is ELMO. It is a HR and payroll platform provider that has been growing at a rapid rate over the last few years and even during the pandemic. Its popular software platform allows businesses to simplify and streamline a wide range of tasks. Demand has been strong, leading to stellar recurring revenue growth over the last few years. For example, last week ELMO released its first quarter update and revealed Annualised Recurring Revenue (ARR) of $88.5 million, which was up 61% over the prior corresponding period. This was driven by the benefits of acquisitions and a 35% increase in organic revenue.

In response to its update, Morgan Stanley retained its overweight rating and $7.80 price target on ELMO's shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. It was unsurprisingly hit hard by the pandemic. However, the company has been tipped to win market share and resume its rapid growth once the crisis passes and trading conditions recover. In fact, this is already happening. Last week the company revealed that during the first quarter of FY 2022, IELTS volumes were up 84% on the same period last year.

This led to Morgan Stanley retaining its overweight rating and $40.20 price target on the company's shares.

Temple & Webster Group Ltd (ASX: TPW)

Another growth share to consider is Temple & Webster. It is Australia's leading online furniture and homewares retailer. It has been growing at a strong rate over the last few years. This has been driven by the shift to online shopping. Pleasingly, this strong growth has continued despite COVID tailwinds easing. Last week the company revealed that its revenue for the period July 1 to 15 October increased 56% over the prior corresponding period.

In response, Credit Suisse retained its outperform rating and lifted its price target on the company's shares to $15.89.

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 Elmo Software, Idp Education Pty Ltd, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Elmo Software. 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.

More on Growth Shares

Smiling woman with her head and arm on a desk holding $100 notes, symbolising dividends.
Growth Shares

The best ASX shares to invest $1,000 in right now

Analysts think these shares could be worth considering for an investment.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These valuations are too good to ignore! I'd buy these ASX shares today

I think these businesses have very attractive futures.

Read more »

A man and woman jump in the air and high five with both hands on a road after running.
Growth Shares

2 battered ASX growth shares that could double in value or more

Brokers are strikingly bullish and tip up to 180% upside.

Read more »

Cropped shot of a young female scientist working on her computer in the laboratory.
Healthcare Shares

Could Telix shares be a millionaire-maker stock?

Telix looks a compelling growth story, with brokers eyeing more than 150% upside.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

2 top ASX shares I'd buy right now in this March madness

The valuations these businesses are now trading at are too good to ignore!

Read more »

A man has a surprised and relieved expression on his face.
Growth Shares

3 undervalued ASX stocks to consider buying immediately

Analysts are tipping huge upsides ahead for these undervalued shares.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Healthcare Shares

3 ASX healthcare stocks tipped to soar over 100% higher this year

These ASX shares are on my radar this week.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Growth Shares

2 ASX growth stocks down 40% to 60% to buy now

Big sell-offs can sometimes create compelling investment opportunities.

Read more »