3 exciting ASX growth shares with major upside potential in 2022

Check out these buy-rated growth shares…

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The Australian share market is home to a number of companies growing at a rapid rate. Three that could be well-placed for growth are listed below.

Here’s why they have been rated as buys and tipped to provide strong returns for investors:

Bigtincan Holdings Ltd (ASX: BTH)

The first ASX growth share to look at is Bigtincan. This sales enablement platform provider has been growing at a rapid rate in recent years thanks to the increasing popularity of its offering. For example, in FY 2021, Bigtincan reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million. Looking ahead, its position in the market has been strengthened via the acquisition of US-based Brainshark. It is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness. Management expects the acquisition to underpin combined ARR of $119 million in FY 2022. This represents a 124% year on year increase.

Morgan Stanley is very positive on the company. It currently has an overweight rating and lofty $2.10 price target on its 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. While the last two years have been tough for the company, its future remains as a bright as ever. Especially given its leading position in a growing market, which has strengthened during the pandemic thanks to easing competition and a key acquisition in the lucrative India market.

The team at Morgan Stanley is also positive on IDP Education. It currently has an overweight rating and $40.20 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX growth to look at is this cloud-based accounting solution provider to small and medium sized businesses. Xero has been growing at a rapid rate in recent years and continued this trend in FY 2022. During the first half, it reported a 23% increase in subscribers to 3 million, a 61% jump in total subscriber lifetime value (LTV) to NZ$9.9 billion, and a 29% lift in annualised monthly recurring revenue (AMRR) to NZ$1,132 million. Positively, Xero’s subscriber count is still well short of its total addressable market of 45 million subscribers globally. This and its plan to monetise its growing user base give it a very long growth runway in the 2020s.

Goldman Sachs is bullish on Xero. Its analysts currently have a buy rating and $158.00 price target on its shares.

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*Returns as of January 12th 2022

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 and has recommended BIGTINCAN FPO, Idp Education Pty Ltd, and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended BIGTINCAN FPO. 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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