Looking for growth shares to buy? Well, here's some good news! Listed below are two growth shares that have recently been named as buys with material upside potential.
Here's what you need to know about them:
Altium Limited (ASX: ALU)
The first ASX growth share to look at is Altium. It is an electronic design software provider behind the Altium 365 and Altium Designer platforms.
Altium also has a number of complementary businesses such as Nexus and Octopart which have large opportunities and are generating significant revenues.
All in all, this means Altium has a portfolio of businesses that have positioned it perfectly to profit from the increasing demand for electronic design software due to the rapidly growing Internet of Things (IoT) and AI markets.
Bell Potter is a fan of Altium and was pleased with its "strong" half year results last month. It currently has a buy rating and $38.75 price target on the company's shares.
Pro Medicus Limited (ASX: PME)
Another ASX growth share that is highly rated is Pro Medicus. It provides industry-leading software that facilitates the clinical assessment of medical images.
The team at Morgans is positive on the company and was very impressed with its recent half year update. This was particularly the case with its margins, which surprised to the upside.
It commented: "While revenues were in-line with our forecasts, EBIT margins (~65%) was really the standout, with a 600bp improvement versus our expectation of a 100bps decline on the pcp, where we assumed the resumption of major marketing conferences and travel expenses would curb margin growth. We were wrong."
Morgans also notes that the company's sales pipeline continues to strengthen, which bodes well for its future growth and is expected to underpin further operating leverage over the long term.
In light of this positive outlook, it recently retained its add rating and lifted its price target on the company's shares to $56.20.
