The good news for Australian growth investors is that there are plenty of quality options to choose from on the local share market.
But which ASX growth shares could be best buys this month?
Let's take a look at two growth shares that brokers rate very highly:
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IPD Group Ltd (ASX: IPG)
The team at Bell Potter is feeling very bullish on this distributor of electrical equipment and industrial digital technologies and sees it as an ASX growth share to buy.
Its analysts expect the company to benefit greatly from the electrification megatrend. The broker explains:
We view IPG as a high quality play on the electrification growth trend which is emerging as a dominant market narrative. Our favourable investment thesis is based on three key points: (1) product volumes being driven by refurbishment/ upgrade of existing infrastructure and by virtue of relatively low demand risk; (2) IPD's large turnaround opportunity with a globally leading manufacturer in ABB (market share in Australia of 5-10% compares to Europe of 20-30%); and (3) IPD's electric vehicle charging opportunity reaching a tipping point in FY24e. Australia is set for a $650m public fast charging investment cycle by 2027 and IPD is engaged with a number of players who we expect to lead this transition (e.g. service station chains and network operators).
Bell Potter has IPG on its preferred list with a buy rating and $5.90 price target.
Objective Corporation Ltd (ASX: OCL)
Analysts at Morgans think that Objective Corp could be an ASX growth share to buy. It is a content, collaboration and process management solutions provider for the public sector in the Asia Pacific and Europe.
The broker believes that Objective Corp is well-placed to benefit from increased software spending in the global public sector. It explains:
Global Public Sector software spend is anticipated to grow at a low double-digit rates over the near term as governments look to streamline workflow, improve security, and modernise legacy IT infrastructure. We see Objective as being a beneficiary of this trend. Objective has seen a strategic reset in its earnings in FY23 as it looks to prioritise subscription licencing revenue growth, streamline deployment of its solutions, and invest in product and sales support functions. Whilst this has recently weighed on the company's share price, we believe Objective should be well positioned to see long-term revenue growth rates and margins return in FY24 and beyond. The company is also strongly capitalised and well positioned to take advantage of M&A opportunities as private market technology valuations have contracted, which in our view could add incremental scale and scope for long-term growth.
Morgans has Objective Corp on its best ideas list with an add rating and a $14.00 price target on its shares.
