If you have room in your portfolio for some new additions, then you might want to consider the two ASX growth shares listed below. Both have recently been named among the Morgans best ideas list for October.
Here's why its analysts are bullish on these ASX shares:
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IDP Education Ltd (ASX: IEL)
The first ASX growth share that Morgans rates highly is IDP Education. It is a student placement and language testing company with operations across the world.
The broker believes that IDP is well-placed for growth and is forecasting a two-year earnings per share compound annual growth rate of 38.2%. It commented:
IEL's recovery (Australia Student Placement) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, market share gains, technology-led client retention, operating leverage and acquisitions (especially IELTs distribution) can see IEL compound growth long-term. Value has emerged, however IEL's near-term multiples see the stock susceptible to short-term volatility.
Morgans has an add rating and $31.10 price target on IDP Education's shares.
Pro Medicus Limited (ASX: PME)
Another ASX growth share that Morgans is bullish on is Pro Medicus. It is a health imaging technology company behind the incredibly popular Visage 7 Enterprise Imaging platform.
Morgans likes the company due to its strong growth potential thanks to the quality of its offering and industry tailwinds. It expects this to underpin a two-year earnings per share compound annual growth rate of 23.8%.
The broker commented:
Pro Medicus is a leading healthcare end-to-end imaging software and service provider, servicing a number of the world's largest imaging centres and health care groups. We like the space, with high single digit organic volume growth and long-term industry tailwinds. Profitability in the business is backed up by long-term contracted revenues with some of the world's largest hospital systems and growing pipeline of tenders which we view will provide continued growth over the medium to long term.
Morgans has an add rating and $58.18 price target on the company's shares.
