If you're a fan of investing in growth shares, then you may want to look at the ASX shares named below that have been tipped as buys by analysts at Morgans.
Here's why the broker thinks these are some of the best growth shares on the Australian share market right now:
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Corporate Travel Management Ltd (ASX: CTD)
One growth share that Morgans is bullish on right now is corporate travel specialist Corporate Travel Management. The broker feels it is a great option in the travel sector. This is due to its belief that the company is well-placed for growth over the medium term thanks to acquisitions, its lower cost base, and technology development. Morgans commented:
CTD is our key pick of the travel sector. For investors that can take a medium-term view, we see substantial upside in its share price as the company recovers from the COVID-affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost-out opportunities and continued to develop its market-leading technology offering which means it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).
Morgans currently has an add rating and $25.65 price target on the company's shares.
TechnologyOne Ltd (ASX: TNE)
This enterprise software company could also be a growth share to buy according to Morgans. It is one of the broker's favourite options in the tech sector right now. This is thanks to its pricing power, defensive earnings, strong cash balance, and long track record of solid earnings growth. The broker explained:
The technology sector is under pressure due to inflation and interest rate concerns which remain a key risk. However, for those looking for a technology play, TNE is our preferred exposure. It has pricing power (CPI passthrough on contracts), has ~$170m of net cash, is highly cash generative, has very defensive earnings, pays a dividend, and a has a decade plus track record of 10-15% pa EPS growth.
Morgans has an add rating and $11.53 price target on TechnologyOne's shares.
