There are a lot of growth shares for investors to choose from on the Australian share market.
To narrow things down, below are two ASX growth shares that are highly rated right now. Here's what you need to know about them:
Audinate Group Limited (ASX: AD8)
The first ASX growth share to look at is Audinate. It is a leading digital audio-visual networking technologies provider.
The key product in its portfolio is the Dante audio over IP networking solution. Management notes that Dante is the evolution of AV systems, converging all previous connection types into one. It delivers vastly superior performance while making these systems easier to use, easier to expand, and less expensive to deploy. The solution is the clear industry leader, with the number of Dante enabled products manufactured by its customers ~8x greater than its nearest rival.
And while supply chain issues have been weighing on its performance, this is only expected to be a temporary headwind.
UBS remains positive on the company's future. As a result, it has put a buy rating and $10.40 price target on its shares. The broker believes the company is well-placed to win a big share of the digital AV networking market over the long term.
Megaport Ltd (ASX: MP1)
Another ASX growth share to look closely at is Megaport. It is leading cloud connectivity and networking solutions provider which has been growing at a solid rate in recent years. This is due to its first mover advantage in a market benefiting from two long-term structural tailwinds.
Goldman Sachs notes that these are the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS). The latter is being driven by the increased prevalence of hybrid working and cloud-based applications which put strain on legacy networks designs and impact performance.
The broker is very positive on the company because of these structural tailwinds and believes it is well-placed for strong growth over the long term. So much so, earlier this week Goldman initiated coverage on Megaport with a buy rating and $20.00 price target. It believes Megaport's "opportunity for further growth is immense (GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies)."
