Buy and hold investing can be one of the best ways to grow your wealth.
But that doesn't mean just buying any old share. Investors should focus on buying the highest quality companies they can find with positive long term growth outlooks and sustainable competitive advantages.
With that in mind, here are two ASX 200 growth shares that analysts are tipping as top buys. Let's see why they could be great buy and hold options for Aussie investors:
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NextDC Ltd (ASX: NXT)
The first ASX 200 growth share that could be a top buy and hold option Is NextDC.
It is a leading provider of innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.
NextDC has been growing at a strong rate over the past decade thanks to its growing footprint and strong demand for capacity in its centres. This was initially driven by cloud computing boom and now artificial intelligence (AI).
Morgans is a big fan of the company and sees it as a great option due to its AI exposure. It said:
Enjoying all the benefits of the AI growth opportunity with less volatility are the operators of data centres. Data centres are facilities that store, process, and manage the vast amounts of data foundational to AI, ensuring secure and efficient data flow, backup, and recovery. […] Digital Realty recently reported a record sales quarter during which it sold double the data centre capacity of its previous high and about four times more capacity than it usually sells in a quarter.
This reinforces our view that the significant demand for cloud computing and AI-related digital infrastructure is going to unpin attractive returns and long-term growth. […] Our preferred exposure is NEXTDC. It has 17 operational data centres in Australia and nearly a dozen under construction or about to be built across Australasia and Asia.
Morgans currently has an add rating and $20.50 price target on its shares.
WiseTech Global Ltd (ASX: WTC)
Another ASX 200 growth share that could be a quality buy and hold option is WiseTech Global. It is a leading global provider of software solutions to the logistics services industry.
The company's CargoWise One platform is a market leading solution that is used by many of the largest logistics providers in the world. Its stickiness and low churn rates has underpinned very strong recurring revenue growth in recent years.
The good news is that Bell Potter believes this strong form can continue. It recently said:
WTC has a high degree of recurring revenue (80-85%) and should continue to grow its revenue/earnings from further customer wins. We see CargoWise as the market leader in freight forwarding software and expect growth to accelerate due to the launch of three new products, as well as ongoing global roll-out wins.
All up, WTC is a growth story with strategic acquisitions representing upside potential enabling WTC to benefit from large-scale global rollouts and consolidation within the logistics sector.
Bell Potter has a buy rating and $140.00 price target on its shares.
