If you're a growth investor then you're in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow strongly in the coming years.
Two top growth shares that have been tipped as buys are listed below. Here's why they are highly rated:
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CSL Limited (ASX: CSL)
The first share to look at is CSL. It is one of the world's leading biotherapeutics companies and home to the high quality CSL Behring and Seqirus businesses.
CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business. Both have been growing at a solid rate in recent years and have been tipped to continue this trend in the future thanks to their leading therapies and lucrative research and development pipelines.
In respect to the latter, CSL's pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. One of those is clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.
UBS recently retained its buy rating and $346.00 price target on CSL's shares. This compares very favourably to the latest CSL share price of $274.60.
Nearmap Ltd (ASX: NEA)
Another ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American market.
Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.
Thanks to geographic expansions, new growth initiatives, and the quality of its offering, management believes the company is well-positioned for growth in the future. As a result, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
Analysts at Morgan Stanley are positive on the company and have an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.
