Are you looking for some growth shares to buy? If you are, you may want to check out the ones that Goldman Sachs has buy ratings on.
Here are two growth shares it rates highly:
NEXTDC Ltd (ASX: NXT)
The first growth share to look at is NEXTDC. It is a leading data centre operator with operations across Australia. It has also recently opened up offices in Singapore and Tokyo, with a view to expanding into these markets in the near future.
Given the size of these markets, if this expansion proves to be a success, it could take its growth up another level. As could its recent venture into edge data centres. These are centres in regional areas that are designed to directly and seamlessly interconnect regionally located organisations back into NEXTDC’s metropolitan data centre network.
Goldman Sachs is very positive on its future and has a buy rating and $14.40 price target on its shares. It said: “We see NXT continuing to grow EBITDA at c.20%” through to FY 2024.
Xero Limited (ASX: XRO)
Another ASX growth share that Goldman Sachs is a fan of is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses globally.
Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. Particularly given recent acquisitions, which are strengthening its offering and positioning it for growth.
In addition, Xero looks well-placed for growth thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem. Goldman Sachs is particularly positive on the latter. It believes Xero could have a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.
Goldman currently has a buy rating and $158.00 price target on its shares. The broker commented: “We expect XRO revenue to double across FY21-24E (+26% CAGR).”