ASX growth shares that are delivering rapid progress in their revenue and profit can be really attractive investments.
Compounding is a very powerful force and helps a business grow into a much larger company after a few years.
I'm going to look at two ASX growth shares that are expected to grow their earnings and are rated as buys by broker UBS.
REA Group Ltd (ASX: REA)
This company is the owner of realestate.com.au, Australia's leading property portal. It also owns a number of other Australian property-related businesses and a few international businesses, including REA India.
UBS rates REA Group as a buy with a price target of $248. A price target is where analysts think the share price will be in 12 months from the time of the investment call. That means the broker reckons the REA Group share price could climb by around 30% in the next year.
The broker said that in 2026, investors will be seeking clarity around potential long-term impacts of AI on the broader industry and its pricing power. There is also wider uncertainty impacting volumes, with inflation remaining sticky and expectations around potential rate hikes in Australia.
UBS says it sees an economic moat in the ASX growth share's customer experience, brand, uniqueness of product and complexity of the ecosystem. The broker thinks there is potential for the negative AI narrative to unwind over this year.
The broker also indicated that current global developments (such as Zillow partnering with OpenAI), suggest a "supportive environment where AI platforms are partnering with established players, rather than looking to displace".
UBS thinks the company can extract strong yield growth (price increases) in 2026 and this could alleviate some market concerns. The broker also suggested that potential rate hikes could lead to more distressed selling by some property owners, which may help volumes. Currently, the broker is expecting a slight decline of volumes (1.5%) in FY26.
Nextdc Ltd (ASX: NXT)
Nextdc is a leading data centre developer and provider, with locations in a number of cities including Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Darwin, Port Hedland, Sunshine Coast, Tokyo , Kuala Lumpur and Auckland.
The business is rated as a buy by UBS, with a price target of $22.55. That suggests a possible rise of close to 70% over the next year.
UBS has noted that in the first six months of FY26, it contracted approximately the same level of MW (167MW) as the prior four years cumulatively and also more than doubled the record contracted MW in FY25 (72MW).
The broker estimated that 94MW of uncontracted capacity exists within existing assets in NSW and Victoria, meaning there's more room for large-scale contracts.
UBS suggested one of the reasons why the market is uncertain about the ASX growth share at the moment is its balance sheet capacity. The broker forecasts net debt could peak at $5.5 billion in FY28, compared to its facility for $6.4 billion.
The broker estimates that around 60MW could be built and fitted with the current debt facility.
UBS noted that its price target is based on its existing operations as well as the developed application-approved land bank.
