If you’re looking for some new additions, then you may want to look at the shares listed below.
Both of these ASX shares have been named as buys by analysts this week. Here’s why they could be in the buy zone right now:
Nearmap Ltd (ASX: NEA)
The first ASX share for investors to look at is Nearmap. It is a growing aerial imagery technology and location data company. Nearmap provides businesses in the ANZ and North American markets with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.
While its growth has been a little inconsistent over the last five years, this was driven largely by its dependence on several large customers. With its customer base now more evenly spread, Nearmap’s growth has been smoother. The good news is that management is confident in its growth trajectory from here and is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term.
Earlier this week, analysts at Citi upgraded Nearmap’s shares to a buy rating with a $2.10 price target. Citi expects Nearmap’s cash burn to peak in FY 2022, which it feels could boost investor sentiment.
REA Group Limited (ASX: REA)
A final ASX share to look at is REA Group. It is the digital advertising company that operates Australia’s leading property website, realestate.com.au. It also operates a number of complementary businesses, such as mortgage broking, in the Australian market and internationally.
Although market conditions have been up and down over the last few years, the resilience of its business model allowed REA Group to continue its growth.
The team at Goldman Sachs appear confident this trend will continue. This morning the broker put a buy rating and $168.00 price target on REA’s shares. Goldman is expecting REA to deliver first half profit growth of 32% to $226.7 million.