The good news for growth investors is that there are plenty of quality options to choose from on the Australian share market.
But which ones could be buys in July?
Let's take a look at three ASX growth shares that brokers rate highly:
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IDP Education Ltd (ASX: IEL)
This language testing and student placement company could be an ASX growth share to buy according to analysts at Goldman Sachs.
While the company's growth is expected to be challenged this year and next year due to industry headwinds, the broker believes its growth will resume the following year and then continue long into the future. It commented:
IEL remains well placed to capitalise as conditions normalise into FY26E, with IEL selectively investing for growth while SP competitors come under significant pressure. In our view the regulatory headwinds are cyclical, while structural SP growth can resume off the FY25E baseline.
Goldman has a buy rating and $21.75 price target on its shares.
NextDC Ltd (ASX: NXT)
Another ASX growth share to consider buying in July is NextDC. It is one of the Asia-Pacific region's leading data centre operators.
The team at Morgans is feeling very positive about the company's outlook. It is forecasting strong earnings growth in the coming years thanks to the incredible demand for data centre capacity. It explains:
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 has an add rating and $19.00 price target on NextDC's shares.
TechnologyOne Ltd (ASX: TNE)
Over at Bell Potter, its analysts think that growth investors should be looking at TechnologyOne. It is a leading enterprise software provider.
Bell Potter highlights that TechnologyOne has been growing at a quicker and quicker rate in recent years. The good news is that it believes this trend will continue. It said:
The growth in Technology One's PBT [profit before tax] over the last four years has been 13%, 14%, 15% and 16%. We expect this trend of a steadily increasing rate of growth will continue in FY24 and the PBT growth will be either 17% or 18% (we currently forecast 17.5%). The company guidance for FY24 is PBT growth of 12-16% but the likely full year revenue of around $500m and the flagged 100bp increase in the margin suggests or implies PBT of >$152m which equates to growth of 17% or more.
Bell Potter has a buy rating and $20.25 price target on TechnologyOne's shares.
