Looking for an ASX growth share or two to buy? Two that analysts at Morgans rate as buys and have on their best ideas list in December are listed below.
Here's what the broker is saying about them:
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Seek Limited (ASX: SEK)
Morgans believes that this job listings giant is a growth share to buy. The broker feels that Seek is well-placed for growth in the coming years thanks to its strong market position and favourable tailwinds.
It explained:
Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that's based on the sustained listings growth we've seen over the period. The tailwinds that have driven elevated job ads (~250k currently, +35% on pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK's products.
Morgans currently has an add rating and $29.40 price target on its shares.
Xero Limited (ASX: XRO)
A new ASX growth share that Morgans has on its best ideas list in December is Xero. While the broker acknowledges that trading conditions are tough, it feels the weakness in the Xero share price has created a rare buying opportunity for investors.
It explained:
XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current short-term weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.
Morgans has an add rating and $77.00 price target on Xero's shares.
