If I were trying to generate the biggest returns for my portfolio, I'd focus on ASX growth shares because of their ability to compound their earnings into much larger figures.
Typically, it's businesses utilising technology that are capable of achieving the most rapid growth. That's because they don't usually have physical limitations to their ascent (such as needing more stores, more warehouses or manufacturing facilities). Plus, that means they have high profit margins.
In this article, we're going to look at two ASX growth shares that experts from broker UBS really like and are predicted to grow profit significantly in the coming years.
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REA Group Ltd (ASX: REA)
UBS describes REA Group as an online advertising business specialising in real estate. Its flagship site is realestate.com.au and the company also operates mortgage broking business in Australia as well as other real estate-related businesses. The company also has a majority stake in REA India.
REA Group has two main sources of revenue. First, its advertising via its websites and second, web development and other services provided to the real estate investment industry.
UBS currently has a buy rating on REA Group shares, with a price target of $290. That implies a possible rise of 25% over the next year from where it is today. The broker said it's a buy on the strength of the business, coupled with a positive outlook. FY25 saw revenue growth of 15%, flowing through to net profit after tax (NPAT) growth of 23%.
The broker highlighted that in FY26, REA Group's yield is set to grow, supported by a 7% price rise. But, REA Group is also expected to increase marketing ahead of CoStar's entry into the market following the acquisition of Domain. AI-related and other cost efficiencies are expected to provide offsets.
REA Group management provided guidance of flat volume growth, which is what UBS is essentially expecting too. But, there could be a positive surprise following RBA rate cuts and rising auction clearance rates.
UBS also pointed out that the ASX growth share could take up more of the advertising budget of property sellers over time:
Longer term we flag that REA's take rate of 0.21% of avg property value vs the overall marketing spend of 0.8%-1.0% leaves a significant runway for further growth.
The broker forecasts REA Group could make $673 million of net profit in FY26 and reach $1.17 billion of net profit by FY30.
WiseTech Global Ltd (ASX: WTC)
UBS says WiseTech is a global software solutions company that develops, sells and implements software to logistics service providers in more than 165 countries. Its core platform, CargoWise, helps customers carry out complex logistics transactions and manage operations on one global database. Its customers include many of the world's largest global freight forwarders and third-party logistic providers.
The broker has a buy rating on WiseTech shares, with a price target of $130. That implies a possible rise of 38% over the next year from where the ASX growth share is today.
UBS said the growth story is still intact but it's "just taking a bit longer". The broker noted that FY26 is going to be a busy year for the ASX growth share with the integration of E2open, the launch of a new commercial model (including AI benefits) and the launch of its container transport optimisation offering.
Despite the slowing of revenue, its FY25 operating profit (EBITDA) of US$410 million beat UBS projections by 3%.
The broker is forecasting the business could grow net profit from $244 million in FY26 to $777 million in FY30. That suggests significant profit growth over the next few years and could justify a higher WiseTech share price.
