Are you wanting to add a growth share or two to your portfolio? Then you might want to take a look at the ones listed below.
These ASX growth shares have been tipped to deliver strong growth in the future. Here's what you need to know:
Image source: Getty Images
a2 Milk Company Ltd (ASX: A2M)
A2 Milk Company is a leading infant formula and fresh milk company. Over the last few years it has grown its earnings at an exceptionally strong rate thanks to the increasing demand for its premium infant formula in the lucrative China market.
Things have not been as easy for the company this year because of the pandemic. Panic buying and pantry stocking at the height of the pandemic pulled forward sales, reducing demand during the first half of FY 2021. In addition to this, travel bans have impacted the daigou channel and put a dent in its sales.
While this is likely to weigh heavily on its FY 2021 result, management remains confident that this is only a temporary headwind and its growth will resume once trading conditions improve. One broker that agrees is Morgans. It recently put an add rating and $17.28 price target on the company's shares. It believes the company's challenges are transitory and feels recent share price weakness is a buying opportunity.
Altium Limited (ASX: ALU)
Altium is a leading printed circuit board (PCB) design software provider. It has also been growing at a very strong rate over the last few years. This has been driven by increasing demand for its software thanks to its exposure to the booming artificial intelligence and Internet of Things markets.
And while the pandemic is also weighing on its performance and will stifle its growth in FY 2021, management remains very bullish on its longer term prospects. At its recent annual general meeting, it reaffirmed its aim of dominating its market and growing its revenue to US$500 million by 2025-26. This will be a 150% increase on FY 2020's revenue.
At present, analysts at Morgan Stanley have an overweight rating and $40.00 price target on Altium's shares.
