Looking for growth shares to buy? Then you might want to consider adding the two listed below to your portfolio.
Here's why they have been tipped as growth shares to buy:
Image source: Netflix
Nearmap Ltd (ASX: NEA)
The first ASX growth share to look at is Nearmap. It is a leading provider of aerial imagery technology and location data services to the ANZ and North American market.
The company notes that its product allows users to see clear and compelling change over time from aerial imagery and geospatials that are consistently current, and at higher resolution to easily detect and measure even the finest ground features.
Over the 2020s, Nearmap is aiming to deliver annualised contract value (ACV) growth of 20% to 40% per annum. Management expects this to be achieved through its new growth initiatives, geographic expansion, and the launch of new products.
Goldman Sachs currently has a buy rating and $2.75 price target on Nearmap's shares. This compares to the latest Nearmap share price of $2.14. Goldman believes its technology is market-leading and expects the company to benefit from a sharp economic recovery in the US market after COVID headwinds ease.
Xero Limited (ASX: XRO)
Another ASX growth share to look at is this cloud-based business and accounting software provider.
Xero has been a strong performer over the last 12 months despite the pandemic's impact on small businesses. This led to the company recording stellar growth in revenue, earnings, and customer numbers during the first half of FY 2021.
Pleasingly, Goldman Sachs feels the company can continue this positive form for some time to come. The broker notes that the company is well-placed to deliver multi-decade strong growth thanks to its geographic expansion and the monetisation of its app ecosystem.
In light of this, Goldman is very bullish on the investment opportunity here. As such, it has put a buy rating and $157.00 price target on its shares. This compares to the latest Xero share price of $119.94.
