Brokers rate these ASX growth shares as buys

Here are two buy-rated growth shares…

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If you're planning to add some growth shares to your portfolio in November, then you might want to look at the shares listed below.

Both of these ASX growth shares have been tipped as buys recently. Here's what you need to know about them:

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Nearmap Ltd (ASX: NEA)

The first ASX growth share to consider buying is this leading aerial imagery technology and location data company. Nearmap's geospatial map technology gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

Nearmap has been experiencing strong and growing demand for its offering, particularly in the North American market. This led to Nearmap delivering a 26% increase in Annual Contract Value (ACV) to $128.2 million in FY 2021. This was a touch ahead of its guidance for the year.

Looking ahead, management continues to target ACV growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

One leading broker that is a big fan of the company is Morgan Stanley. It has an overweight rating and lofty $3.20 price target on Nearmap's shares.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its key solution – Nitro Productivity Suite.

It provides businesses of all shapes and sizes with integrated PDF productivity and eSignature tools through a horizontal, SaaS and desktop-based software suite. This allows users to productively manage and process documents for many functions including editing, collaboration, storage and electronic signing.

As with Nearmap, demand has been growing rapidly in recent years and has continued in FY 2021. For example, its recent third quarter update reveals that management expects its annual recurring revenue (ARR) to be in the range of US$39 million to US$42 million this year. This represents annual growth of 40% to 50%.

Bell Potter is a fan of Nitro. It currently has a buy rating and $4.50 price target on the company's shares.

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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