3 buy-rated ASX shares with strong growth potential

These growth shares have been tipped as buys…

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Looking for a growth share or two to buy? Three that could be worth considering are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Bigtincan Holdings Ltd (ASX: BTH)

The first ASX growth share to look at is this sales enablement platform provider. Bigtincan was on form in FY 2021, delivering a 48% increase in annualised recurring revenue (ARR) to $53.1 million. The good news is that management expects more of the same in FY 2022. In fact, it expects to more than double its ARR to $119 million. This is expected to be driven by organic growth and the benefits of the acquisition of Brainshark. It is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness.

Morgan Stanley is very positive on the company. It has an overweight rating and $2.10 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share to consider is Life360. It is the growing technology company behind the Life360 family safety app. This increasingly popular app was being used by a whopping 33.8 million people globally at the end of the third quarter. This was up by 1.5 million users over the three months and underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) to US$120.1 million.

Bell Potter was pleased with its update. The broker responded by retaining its buy rating and lifting its price target on Life360’s shares to $12.50.

ResMed Inc. (ASX: RMD)

A final growth share to consider is ResMed. It is a medical device company with a focus on the sleep treatment market. ResMed has been tipped to continue its strong growth over the long term thanks to its industry-leading products and massive market opportunity. In respect to the latter, management estimates that there are ~1 billion people impacted by sleep apnoea worldwide, with just ~20% already diagnosed.

Credit Suisse is a fan of ResMed and has an outperform rating and $43.00 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 BIGTINCAN FPO and Life360, Inc. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended ResMed Inc. 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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