Luckily for growth investors, there's no shortage of quality growth shares on the Australian share market for them to choose from.
Two that are highly rated right now are listed below. Here's what you need to know about them:
Adore Beauty Group Limited (ASX: ABY)
The first growth share to look at is Adore Beauty. It is Australia's leading pure-play online beauty retailer.
After delivering strong growth in FY 2021, Adore Beauty has followed this up with further strong growth in the first quarter of FY 2022. Its recently released first quarter update revealed revenue of $63.8 million, up 25% on the prior corresponding period. This annualises to ~$255 million.
While this is a large number, it is still only a modest slice of the Australian beauty and personal care (BPC) market. That is currently estimated to be worth $11.2 billion and growing.
One leading broker that is a fan of Adore Beauty is UBS. It currently has a buy rating and $6.00 price target on its shares.
Goodman Group (ASX: GMG)
Another growth share for investors to look at is Goodman Group. It is a leading integrated commercial and industrial property company.
Thanks to its high quality portfolio, which has been curated expertly by management to give it exposure to industries benefiting from structural tailwinds such as the digital economy, Goodman has been growing its earnings at a solid rate over the last decade.
Pleasingly, this looks set to continue in FY 2022. Last week the company released its first quarter update and revealed that the consistent execution of its strategy has resulted in increased transactional activity and higher earnings certainty for the full year.
This led to Goodman upgrading its operating earnings per share growth guidance for FY 2022 to be in excess of 15%. This compares to prior guidance of 10% growth.
This went down well with Citi, which retained its buy rating and lifted its price target on Goodman's shares to $27.50. The broker believes Goodman is well-placed for growth and has a three-year earnings per share CAGR estimate of ~16%.
