There are plenty of options for growth investors to choose from on the Australian share market.
So many, it can be hard to decide which ones to buy over others.
To narrow things down, let's take a look at two ASX growth shares that brokers rate as buys this month. They are as follows:
Gentrack Group Ltd (ASX: GTK)
The first ASX growth share that could be a top buy this month according to analysts is Gentrack.
It is a specialist software developer to energy utilities, water companies, and airports. The latter includes providing flight information display systems (FIDS) at airports across the world.
The team at Bell Potter is bullish on Gentrack. It believes the company has a strong growth outlook thanks to digital transformations. This is particularly the case in renewables and battery storage, which need modernised IT infrastructure. It said:
Gentrack provides billing products and Customer Relationship Management solutions to energy and water utilities and has robust growth prospects attributed to recurring revenue and one-off projects related to digital transformations.
Specifically, the emergence of renewables and battery storage is increasing complexity in data management and contributing to the need for modernised IT infrastructure supporting earnings growth for GTK.
Bell Potter has a buy rating and $13.50 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
Another ASX growth share that could be a buy according to analysts is TechnologyOne. It is a true Aussie tech success story — and one of the few that has quietly outperformed the broader market over the long term.
The company provides enterprise software solutions to government departments, universities, and large corporates, and it has been transitioning to a software-as-a-service (SaaS) model with great success. Recurring revenue continues to grow strongly and its margins have been equally strong.
What sets TechnologyOne apart from many of its peers is its consistent execution. With over a decade of rising profits, strong free cash flow, and a rock-solid balance sheet, this is a rare blend of growth and stability.
And with public sector digital transformation still in its early stages and the company expanding overseas, TechnologyOne is well placed to keep compounding earnings for many years to come.
UBS is a fan of the company and has a buy rating and $33.80 price target on its shares.
