There are plenty of ASX shares to choose from on the Australian share market.
Two that are among the most exciting right now (and rated as buys by brokers) are named below.
Here's why they could be great additions to a balanced portfolio this month:
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Life360 Inc. (ASX: 360)
The team at Bell Potter thinks that this location technology company could be an ASX share to buy.
It believes the company has a strong growth outlook thanks to its growing paying circle (paid users) and opportunity to disrupt other markets with its huge user base. It said:
Large and resilient subscriber base: Life360 has c.2.4m paying circles – the best measure of subscriber numbers – and managed to grow this base by 23% in 2022, 21% in 2023 and 25% in 2024 despite the disruptions associated with COVID-19. This growth shows resilience in the subscriber base and, furthermore, the potential for continued strong growth in the base with market conditions now back to normal.
Potential to enter and disrupt other markets: Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.
Bell Potter has a buy rating and $37.50 price target on Life360's shares.
Xero Ltd (ASX: XRO)
Another exciting ASX share that could be a buy is cloud accounting platform provider Xero.
Things are certainly looking up for Xero following a recent announcement of an acquisition that is expected to supercharge its US business.
Commenting on the deal, the team at Macquarie said:
Melio improves XRO's ability to grow in the US, XRO's largest TAM segment at US$29b. Medium-term, the larger risk to XRO is an inability to deliver on US growth, not accretion/dilution on a 1/2 year forward time horizon. This acquisition sures up the 5-10 year growth story.
Mgmt is walking the walk, making data-driven decisions that invariably lead to better capital allocation outcomes. We have high conviction in >12- month story. However, with upcoming brand reinvestment, any downside from cost growth presents buying opp. Reiterate Outperform.
Macquarie has an outperform rating and $204.00 price target on Xero's shares.
