If you're on the lookout for some ASX 200 growth shares to buy, then it could be worth listening to what Goldman Sachs is saying about these shares.
Here's why the broker is bullish on them:
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IDP Education Ltd (ASX: IEL)
The first ASX 200 growth share that could be a buy is language testing and student placement company, IDP Education.
Goldman Sachs believes that the company is well-placed to deliver double-digit revenue growth through to at least FY 2025. The broker also suspects that margin expansion will dry even stronger earnings growth. It adds:
We believe IEL's premium valuation is justified given the medium-term earnings potential driven by: (1) Structural growth in multi-destination placements, supplemented by an ongoing Australian recovery; (2) Ability to grow market share in the highly fragmented Canadian and UK SP markets; (3) Reinvestment in digital capabilities to increase competitive moat and generate new earnings streams.
Goldman has a buy rating and $35.70 price target on IDP Education's shares.
Nextdc Ltd (ASX: NXT)
Another ASX 200 growth share that the broker is bullish on is data centre operator NextDC.
Thanks to the cloud computing boom, which is driving strong demand for data centre services, Goldman Sachs is expecting NextDC to grow at solid rate for the foreseeable future. The broker explained:
We are particularly positive on NXT and are Buy rated given the rapid growth in cloud adoption, which has been supported by the continued evolution of the enterprise telecommunications market, and the significant demand by both public and private investors for digital infrastructure assets. We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.
The broker has a buy rating and $14.96 price target on NextDC's shares.
