There are lots of ASX growth shares to choose from on the Australian share market. But which ones could be best buys for the month of June?
To narrow things down, let's now take a look at a couple that are highly recommended by analysts and could be quality options for a $5,000 investment next month. They are as follows:
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Pro Medicus Limited (ASX: PME)
The first share for investors to look at is Pro Medicus. It is arguably one of the most explosive ASX growth shares on the Australian share market.
Year after year, this health imaging technology company has been growing its earnings at a rapid rate. This is thanks to increasing demand for its Visage 7 solution from healthcare institutions.
Pro Medicus' flagship Visage 7 platform allows radiologists to process and analyse medical images faster and more efficiently than traditional systems, helping to improve patient outcomes and reduce costs.
Goldman Sachs believes the company's strong growth can continue for some time to come. It recently said:
We see PME's software Visage 7 as an industry-leading solution with two distinct advantages relative to peers — speed and cloud capabilities — that have influenced the choice of PACS vendor. Given this, PME is benefiting from an industry network effect as more hospitals move to modern systems. PME is expanding into adjacent solutions including AI and Cardiology which could provide significant upside given we believe PME is the incumbent technology leader in radiology, and is well-placed to take share in both markets.
Goldman has a buy rating and $309.00 price target on its shares.
ResMed Inc. (ASX: RMD)
Another ASX growth share that could be a buy is ResMed. It is a leading sleep disorder treatment company with a world class portfolio of devices and software to treat sleep apnoea and other conditions.
Goldman Sachs is also a very big fan of ResMed. And it isn't hard to see why. Sleep apnoea has a huge addressable market, with an estimated 3 in 10 men and 1 in 5 women suffering from the condition.
And with awareness of the condition increasing thanks to technology and weight loss wonder drugs, ResMed is in a very strong position as the clear industry leader. Goldman Sachs recently said:
Our Buy recommendation on RMD is premised on (1) Ongoing robust new patient growth for CPAP therapy despite the market entry of GLP-1 drugs to treat OSA, (2) Further RMD market share gains, building on its #1 global market position, (3) Expansion of the OSA market in regions outside of the US. We believe the stock's current trading multiple is unjustified based on its growth outlook.
Goldman Sachs currently has a conviction buy rating and $49.30 price target on its shares.
