Fortunately for growth investors, there are a lot of quality options for them to choose from on the Australian share market.
Two ASX 200 growth shares that have been rated as top buys by brokers are listed below. Here's what they are saying about them:
Neuren Pharmaceuticals Ltd (ASX: NEU)
The first ASX 200 growth share that could be a buy according to brokers is Neuren Pharmaceuticals.
It is a biotechnology company that is busy developing treatments for rare diseases of the central nervous system. This includes its second drug candidate, NNZ-2591, which is in phase 2 development for multiple neurodevelopmental disorders. To date, positive results have been achieved in clinical trials in Phelan-McDermid syndrome and Pitt Hopkins syndrome.
It is NNZ-2591 that most excites analysts at Bell Potter and underpins its bullish view on the company. It commented:
Our positive outlook on the stock is driven largely by the company's second asset, called NNZ-2591, currently preparing to start Phase 3 clinical trials in CY25. In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia's commercialisation of NEU's first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.
Bell Potter has a buy rating and $28.00 price target on its shares. This implies potential upside of 45% for investors.
ResMed Inc. (ASX: RMD)
Analysts at Morgans think that this sleep disorder treatment focused medical device company could be an ASX 200 growth share to buy.
It notes that weight loss drugs have been weighing on sentiment. However, the broker doesn't believe investors should be overly concerned. Particularly given how large and underserved the sleep disorder breathing market is. Its analysts commented:
While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.
Morgans has an add rating and $34.11 price target on its shares. Based on its current share price of $28.39, this suggests that upside of 20% is possible for investors over the next 12 months.
