Do you have a penchant for ASX growth shares? If you do, you're in luck!
That's because there are plenty of quality options on the Australian share market for growth investors to choose from.
But which ones could be buys right now? To narrow things down, let's take a look at a couple of growth shares that the team at Macquarie Group Ltd (ASX: MQG) currently rates as top buys.
Here are the shares that the broker is recommending to clients right now:
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Siteminder Ltd (ASX: SDR)
The first ASX growth share that Macquarie is tipping as a buy for Aussie investors is Siteminder.
It is a fast-growing software-as-a-service (SaaS) company that helps hotels and accommodation providers manage bookings across multiple channels. Its cloud-based platform connects properties with major travel websites like Booking.com, Airbnb, and Expedia, streamlining availability, pricing, and reservations in one place.
The team at Macquarie is feeling bullish about the company's outlook. So much so, the broker believes that rapid growth could be on the cards for the company in the coming years. Its analysts recently said:
We think SDR will rapidly grow medium-term revenue on continued 1) market share growth; and 2) transaction product adoption. Smart Platform represents material upside revenue potential and if successfully executed should support a long-term re-rate.
Macquarie currently has an outperform rating and $6.09 price target on Siteminder's shares. Based on its current share price of $4.89, this implies potential upside of approximately 25% for investors over the next 12 months.
Xero Ltd (ASX: XRO)
Another ASX growth share that Macquarie is tipping as a buy to clients is Xero.
It is a cloud accounting platform provider that connects small business owners with their numbers, their bank, and advisors at any time. At the last count, the company had over 4.4 million subscribers globally.
Macquarie believes that its subscriber growth will continue. Particularly given the recent announcement of the acquisition of Melio, which is expected to supercharge its US business. Commenting on the transaction, the broker 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 [shores] 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. This implies potential upside of 14% for investors from current levels.
