The Australian share market is home to a good number of shares that are growing at a strong rate.
Two exciting ASX growth shares that are worth looking closely at are listed below. Here's what you need to know about them:
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Megaport Ltd (ASX: MP1)
Another ASX growth shares to look at is Megaport. It is a leading global provider of elastic interconnection services across data centres globally.
Megaport's networking equipment is installed in hundreds of data centres around the world, which has created a software layer that provides an easy way for users to create and manage network connections. This means that through the Megaport network, users are able to create and run a global network with or without the need for physical infrastructure.
Earlier this month Megaport released its half year results, which revealed Monthly Recurring Revenue (MRR) of $6.3 million. This was up an impressive 37% year on year and annualises to revenue of $75.6 million.
The team at Goldman Sachs were pleased with this half year update. In response to it, the broker put a buy rating and $15.55 price target on Megaport's shares. Goldman feels the migration to public cloud infrastructure is likely to remain a strong theme and expects Megaport to benefit greatly from it.
Nuix Limited (ASX: NXL)
Another ASX growth share to look at is Nuix. It is a leading provider of investigative analytics and intelligence software. Through its Discover, Workstation, and Investigate platforms, users are able to transform massive amounts of messy data from emails, social media, communications, and other human-generated content into actionable intelligence. This means they can search it, filter it, visualise it, analyse it, and find the truth it holds.
The company's software has been used in a number of important investigations. This includes the Panama Papers and the Banking Royal Commission. Current users include AIG, Airbus, Amazon, BDO, HSBC, Samsung, and Unilever.
Demand has been strong for its services and led to Nuix reporting a 25.9% increase in total revenue to $175.9 million in FY 2020. This revenue is largely from subscriptions, with subscription revenues now accounting for 88.7% of its total revenue.
One broker that is a fan is Morgan Stanley. It currently has an overweight rating and $11.00 price target on the company's shares.
