When most investors think about Australian shares, they think of banks, supermarkets, or miners.
But there are a handful of locally listed stocks that have expanded well beyond our shores and are quietly building global businesses with enormous growth potential.
Here are two ASX growth stocks doing just that.
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Xero Ltd (ASX: XRO)
Xero started as a small accounting software company in New Zealand and has grown into one of the world's leading providers of cloud-based accounting solutions for small and medium-sized enterprises. Its easy-to-use platform has resonated with businesses globally, and today it serves over 4 million subscribers.
While Australia and New Zealand remain core markets, Xero has made big strides in the United Kingdom, North America, and Asia. Its expansion into payments, payroll, and third-party app integrations also creates multiple new revenue streams, making it more than just accounting software.
This was boosted by the recent agreement to acquire leading US based bill pay platform provider Melio for US$2.5 billion. Commenting on the deal, Xero's CEO, Sukhinder Singh Cassidy, said:
Melio presents an incredibly exciting opportunity for Xero and we look forward to creating a market-leading Accounting and Payments offering that maximises value for our customers and supports our 3×3 strategy and US ambitions.
Analysts at Macquarie are bullish on this ASX growth stock. They have an outperform rating and $204.00 price target on its shares. This suggests that upside of 27% is possible between now and this time next year.
NextDC Ltd (ASX: NXT)
Another ASX growth stock expanding outside Australia is NextDC. The data centre operator designs, builds, and manages some of the most advanced digital infrastructure in the country, servicing technology giants, government agencies, and corporate clients.
The rise of artificial intelligence, cloud computing, and digital transformation has sparked unprecedented demand for secure and scalable data centres. NextDC is capitalising on this by expanding into Southeast Asia, including Singapore, Malaysia, and Japan. This step beyond Australia is key to its long-term growth story, giving it exposure to some of the world's fastest-growing technology markets.
With its strong reputation for reliability and its partnerships with global cloud leaders, NextDC is positioning itself as a vital player in the digital economy.
It is no wonder then that a number of brokers are bullish on this ASX growth stock. One of those is Morgan Stanley, which currently has an overweight rating and $20.50 price target on its shares. This implies potential upside of 21% for investors.
