Brokers are always on the lookout for opportunities. High-growth ASX shares could be appealing ideas for a few different reasons.
For starters, the financial power of compounding can help a business grow significantly over a period of time, such as five years.
The broker UBS has picked out a number of ideas for investors to buy. Let's look at why they are appealing. Let's look at two of those buy-rated high-growth ASX share.
Superloop Ltd (ASX: SLC)
UBS describes Superloop as a business that provides telecommunications infrastructure, cloud and broadband services.
It has three different segments.
First, wholesale, which services large-scale telecommunications, data and technology customers, as well as retail internet service providers that do not have access to their own connectivity segment.
Second, business, servicing small, medium and large corporate customers that purchase connectivity services to facilitate their businesses
Third, consumer, which provides basic internet and mobile phone products for domestic residential use.
UBS currently rates it as a buy, although its current price target is $2.55.
In the FY25 half-year result, the high-growth ASX share saw operating profit (EBITDA) growth of 66%, with earnings growth underpinned by a 63% increase in group subscribers with good growth of both wholesale growth and market share gains in the consumer segment.
UBS is forecasting that Superloop's cash earnings per share (EPS) could grow at a compound annual growth rate (CAGR) of 58%. The broker thinks challenger brands such as Superloop could grow their market share to around 35% collectively, up from around 20%.
WiseTech Global Ltd (ASX: WTC)
UBS describes WiseTech as a global software solutions company that provides offerings for logistics service providers in over 165 countries. Its core platform, CargoWise, helps customers execute highly complex logistics transactions and manage operations on one global database.
Its customers include a large majority of the largest global freight forwarders and third-party logistic providers.
The broker rates the business as a buy, with a price target of $145.
It's positive about the recently announced acquisition of E2Open, a US logistics software-as-a-service (SaaS) provider. This acquisition is set to provide both geographical and market expansion opportunities globally and across the logistics ecosystem.
The broker believes E2Open will complement and accelerate WiseTech's product roadmap for end-to-end supply chain capabilities, in particular with its exposure to importers and exporters.
According to the earnings forecast by UBS, the high-growth ASX share is valued at 116x FY26's estimated earnings.
