2 ASX growth shares that could be strong buys

Altium Limited (ASX:ALU) and this ASX growth share could be top options for investors looking to add growth shares to their portfolio…

| More on:
Two fists connect in a surge of power, indicating strong share price growth or new partnerships for ASC mining and resource companies

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Do you want to add a growth share or two to your portfolio? If you do, then you might want to look at the ones listed below.

Here's why these could be growth shares to buy right now:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is electronic design software provider Altium.

It could be a growth share to buy due to its long term plans to dominate the market it operates in. It aims to achieve this with its Altium Designer software and cloud-based Altium 365 platform. Management believes these platforms are head and shoulders above the competition. A testament to this is the quality of its users. These include giants such as Boeing, Microsoft, NASA, and Tesla, 

Positively, this is a great market to dominate. Thanks to the proliferation of electronic devices because of the Internet of Things and artificial intelligence markets, the electronic design software market is expected to grow materially over the next decade.

Credit Suisse is positive on the company's outlook. It has an outperform rating and $35.00 price target on Altium's shares.

Kogan.com Ltd (ASX: KGN)

Another growth share to consider is Kogan. It is one of Australia's leading ecommerce companies, offering everything from electronics, furniture, and even vehicles with its Kogan Cars brand.

While Kogan has been growing strongly over the last few years, its growth went up a level during the pandemic. This was driven by the closure of retail stores, which sent consumers online in their droves, many for the first time.

This ultimately underpinned a surge in customer numbers and an even greater jump in sales and earnings. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million.

While its growth may moderate now the worst of the pandemic is behind us, its long term outlook remains incredibly favourably. Especially given its strong market position and recent acquisitions of Matt Blatt and Mighty Ape.

Credit Suisse is also a fan of Kogan. The broker currently has an outperform rating and $20.85 price target on its shares.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Growth Shares

3 exciting Australian growth shares to buy with $3,000 in August

Analysts think these shares could be top buys for Aussie growth investors.

Read more »

Young woman waiting for job interview.
Growth Shares

Australian job ad volumes declined last month. Are Seek shares a sell?

Should investors seek returns elsewhere?

Read more »

happy investor, share price rise, increase, up
Growth Shares

The best ASX growth shares to buy now

These growth shares have been recommended as buys.

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Growth Shares

Where to invest $2,500 in ASX shares in August

Let's see which shares are being tipped as buys for next month.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

What to buy now with the ASX at a record high

Analysts think these shares could still rise strongly from current levels.

Read more »

A young man looks at a stylised investment graph superimposed on an exterior office building backdrop.
Growth Shares

Where to invest $10,000 in ASX 200 stocks today

Analysts think these high-quality shares are in the buy zone for investors right now.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Growth Shares

Two ASX industrials shares with buy recommendations

One broker believes these growth shares are set to rise.

Read more »

Man smiling at a laptop because of a rising share price.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These stocks could deliver big returns.

Read more »