If you’re a growth investor with room for some new portfolio additions, then it could be worth considering the three ASX growth shares listed below.
Here’s what you need to know about these buy-rated ASX shares:
Dicker Data Ltd (ASX: DDR)
The first growth share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor, which distributes a growing portfolio of products from the world’s leading technology vendors from its new state of the art distribution centre.
It has been growing at a consistently solid rate for years and the team at Morgan Stanley appear confident this trend can continue thanks to ongoing industry tailwinds. The broker has an overweight rating and $16.00 price target on its shares.
Nitro Software Ltd (ASX: NTO)
Another ASX growth share to look at is document productivity software company Nitro Software. It is the company behind the popular Nitro Productivity Suite, which provides businesses of all sizes with an integrated PDF productivity and electronic signature tools. At the end of FY 2021, the company had over 1 million active subscriptions and reported over 22 million eSignature requests across its platforms.
Goldman Sachs is bullish on Nitro and has a buy rating and $2.60 price target on its shares. It recently commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”
Xero Limited (ASX: XRO)
A final ASX growth share to consider buying is Xero. Over the last few years, the Xero platform has evolved from a simple cloud-based accounting solution into a full service small business solution. This has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform.
The good news is the company still has a very long growth runway, which Goldman Sachs believes has the potential to underpin multi-decade strong top line growth. Goldman has a buy rating and $135.00 price target on the company’s shares.