Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.
Two such shares are named below. Here's why analysts are positive on them:
ResMed Inc. (ASX: RMD)
The first ASX growth share to consider is ResMed. It is focused on the development, manufacturing, distribution, and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders.
ResMed's product support suffers of sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.
Thanks to its world class portfolio, huge (and growing) market opportunity, and wide distribution network, ResMed appears well-placed for growth again over the 2020s. Particularly given a major product recall from a key rival.
Morgans is very positive on ResMed. It believes "the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain."
Its analysts currently have an add rating and $40.46 price target on its shares. This is notably higher than the current ResMed share price of $31.83.
Xero Limited (ASX: XRO)
Another ASX growth share to look at is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.
Xero has been growing strongly for many years and looks well-placed to continue this trend in the future. This is thanks to its ongoing international expansion, value accretive acquisitions, the transition to the cloud, and its burgeoning app ecosystem. The latter has significant monetisation potential according to the team at Goldman Sachs.
Goldman believes the app ecosystem could support Xero's ARPU growth in the coming years. Which, combined with subscriber growth, is expected to underpin strong revenue growth over the 2020s.
The broker currently has a buy rating and $158.00 price target on its shares. This compares to the latest Xero share price of $101.67.
