2 highly rated ASX growth shares to buy before it's too late

Analysts don't want you to miss out on these growing companies.

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There are plenty of ASX growth shares for investors to choose from on the local market.

But which ones could be top options for investors in May? Let's take a look at a couple that are highly rated by analysts. Here's what they are saying about them right now:

IDP Education Ltd (ASX: IEL)

Goldman Sachs remains very positive on this language testing and student placement company and sees it as an ASX growth share to buy.

Its analysts don't appear overly concerned by the short term headwinds that IDP Education is facing. Instead, they are focusing on the long term, which the broker believes is extremely positive. Goldman explains:

With valuation near all-time lows (25x P/E vs 45x historically), and share px -17% in the last month, we would argue the market has priced these cuts already given VA Consensus is relatively flat. We are nearing the base for FY25E earnings and are now capitalising what we see as trough earnings/growth at a historically low multiple. IEL's structural growth outlook and business quality remain unchanged in our view, and we reiterate Buy.

Goldman currently has a buy rating and $26.60 price target on IDP Education's shares.

NextDC Ltd (ASX: NXT)

The data centre market certainly is a great place to be right now. That's because the artificial intelligence (AI) boom is accelerating demand for data centre capacity.

A testament to this was NextDC's recent capital raising. It raised $1.3 billion from investors in April to accelerate "the development and fit out of NEXTDC's leading digital infrastructure platform in its core Sydney and Melbourne markets to meet unprecedented growth in customer demand and position itself to take advantage of ongoing market expansion over the medium term."

It is thanks partly to this demand that Morgans thinks that the company is an ASX growth share to buy right now. It explains:

NXT should deliver another good set of results in FY24 with some upside risk to guidance, in our view. Structural demand for cloud and colocation remains incredibly strong. NXT's new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.

Morgans currently has an add rating and $19.00 price target on NextDC's shares.

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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