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:
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.
