2 ASX growth shares analysts rate as buys

These growth shares have been named as buys…

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Are you interested in adding some ASX growth shares to your portfolio this month? If you are, you may want to look at the ones listed below that have recently been named as buys.

Here's what you need to know about them:

ASX shares profit upgrade chart showing growth

Image source: Getty Images

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is an award-winning printed circuit board design software provider. Altium could be a top option for investors due to its positive long term growth outlook thanks to its exposure to the rapidly growing Internet of Things and artificial intelligence markets.

These are underpinning strong demand for its Altium Designer and Altium 365 software and also its other businesses such as the Octopart search engine.

Jefferies is positive on Altium's outlook and has a buy rating and $48.83 price target on its shares. The broker sees an opportunity for Altium to win a significant share of the enterprise market due to the quality and price of its platform.

NEXTDC Ltd (ASX: NXT)

Another ASX growth share for investors to consider is NEXTDC. It owns a collection of world class Tier III and Tier IV data centre facilities in key locations across Australia. From these centres, NEXTDC provides scalable, on-demand services to support outsourced data centre infrastructure and cloud connectivity for enterprises of all sizes.

NEXTDC has been growing at a strong rate for many years and appears well-placed to continue this positive trend long into the future. This is thanks to the ongoing structural shift to the cloud which is underpinning growing demand for capacity in its centres. In addition, its future growth looks set to be supported by an expansion into Asia and Edge data centres. The latter are centres in regional areas.

The team at Goldman Sachs is very positive on the company's outlook. In fact, the broker believes NEXTDC will grow its operating earnings by ~20% per annum through to at least FY 2024. Goldman has a buy rating and $14.40 price target on the company's shares

Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. 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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