Looking for a growth share or two to buy? If you are, you may want to look at the two listed below.
Here's why these ASX growth shares are rated highly right now:
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Corporate Travel Management Ltd (ASX: CTD)
Although a number of ASX travel shares have recently hit 52-week highs, the same cannot be said for Corporate Travel Management, which is languishing 37% lower than its highs.
The team at Morgans appears to see this as a buying opportunity for investors, especially given how they believe the company will come out of the pandemic in a stronger position. It explained:
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 has an add rating and $25.65 price target on the company's shares. This implies 53% upside from the latest Corporate Travel Management share price of $16.66.
Xero Limited (ASX: XRO)
This cloud accounting platform provider could be another ASX growth to buy.
That's the view of analysts at Goldman Sachs, which believe Xero has a "compelling global growth story."
Particularly given how it currently provides its core accounting solution to a total of 3.3 million global subscribers, which is well short of its total addressable market (TAM) of ~45 million+ subscribers. Goldman commented:
We see Xero as very well placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated.
Goldman Sachs has a buy rating on Xero's shares with a $115.00 price target. Based on the latest Xero share price of $71.07, this implies potential upside of 62% for investors.
