Are you looking to add some ASX growth shares to your portfolio next month? Well, you're in luck! The Australian share market has a large number of quality growth shares to consider buying.
Three that could be great long term options are listed below. Here's why they are rated as buys:
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Altium Limited (ASX: ALU)
Altium is an electronic design software provider which has been growing at an exceptionally strong rate over the last few years. Management remains confident that it still has a long runway for growth. This is thanks to its exposure to the growing Internet of Things and Artificial Intelligence markets, which are underpinning solid demand for subscriptions. It is aiming to almost double its subscriber numbers to 100,000 and its revenue by ~150% to US$500 million by 2025/26. Analysts at Credit Suisse are positive on its outlook. They have an outperform rating and $42.00 price target on its shares.
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. It provides businesses in the ANZ and UK markets with a unified platform that streamlines a wide range of everyday processes. ELMO has been a strong performer over the last few years, and even during the pandemic. In FY 2020 it reported ARR of $55.1 million. This was a 19.7% increase over the prior corresponding period. Pleasingly, management is expecting more strong organic growth in FY 2021, which will be supported by the recent acquisition of Breathe. This acquisition went down well with analysts at Morgan Stanley. They recently reaffirmed their overweight rating and lifted the price target on its shares to $9.30.
ResMed Inc. (ASX: RMD)
ResMed is a medical device company which has a focus on sleep treatment solutions. It also creates ventilators, which have been experiencing incredible demand this year because of the pandemic. Over the last decade the company's revenue and earnings have grown at a very strong rate thanks to the quality of its products and its large and growing market opportunity. In respect to the later, management estimates that there are 936 million people with sleep apnoea globally and 380 million people who suffer from chronic obstructive pulmonary disease (COPD). Last month Credit Suisse upgraded its shares to an outperform rating with a $31.00 price target.
