Investors looking for ASX growth shares to buy might want to look at the three listed below.
That's because all three have recently been named as buys and are forecast to grow strongly in the coming years.
Here's what you need to know:
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Altium Limited (ASX: ALU)
The first ASX growth share that has been named as a buy is Altium. It is the leading printed circuit board (PCB) design software provider behind the Altium Designer and Altium 365 platforms, to name just two.
Thanks to Altium's dominant position in the market, management is aiming to more than double its revenue to US$500 million by 2026. And with the company expecting its margins to expand at the same time, this could underpin explosive earnings growth.
Morgan Stanley is positive on the company and has a buy rating and $43.50 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth share that has been named as a buy Readytech. It is growing provider of mission-critical software-as-a-service (SaaS) solutions to the education, employment services, workforce management, government and justice sectors.
Goldman Sachs is bullish on the company. This is due to its attractive valuation and exposure to government software. The broker notes that the latter "has been a pocket of strength and resilience" and expects it to help "deliver mid-teens organic growth at an expanding profit margin through the cycle."
Its analysts currently have a buy rating and $4.40 price target on its shares.
Xero Limited (ASX: XRO)
Over at Citi, its analysts believe this cloud accounting platform provider could be an ASX growth share to buy.
The broker was pleased with the company's recent decision to reduce its workforce to cut costs. It has boosted its earnings estimates to reflect this and is now forecasting explosive earnings growth in the coming years. Citi expects "Xero to deliver 3-year EBITDA CAGR >35% which reflects revenue growth of ~19%."
The broker has a buy rating and $105.70 price target on Xero's shares.
