Are you a growth investor? If you are, then you're in luck. This is because the ASX is home to a number of companies growing strongly.
Two top ASX growth shares that have been tipped as buys are listed below. Here's why they are highly rated:
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Kogan.com Ltd (ASX: KGN)
Kogan is a leading ecommerce company that has been growing at an explosive rate.
For example, during the first half of FY 2021 Kogan delivered a 97.4% increase in gross sales to $638.2 million and a 250.2% jump in adjusted net profit after tax to $36.5 million.
Key drivers of this stellar growth were the accelerating shift to online shopping, the expansion of its product offering, acquisitions, and a big jump in customer numbers. In respect to the latter, the company reported a 76.8% increase in Kogan active customers to 3 million. It also has ~0.72 million Mighty Ape customers as well.
One broker that appears confident that the company has a long runway for growth is Credit Suisse. Earlier this month the broker put an outperform rating and $20.85 price target on its shares. This compares very favourably to the current Kogan share price of $13.33.
Zip Co Ltd (ASX: Z1P)
Zip is a leading buy now pay later (BNPL) provider which has also been growing at an explosive rate.
This has been driven by its international expansion, the acquisition of QuadPay, the decline in credit card usage, and the growing growing popularity of the BNPL payment method with both consumers and merchants.
During the first half of FY 2021, Zip reported a massive 141% increase in total transaction volume (TTV) to $2.32 billion and a 130% jump in revenue to $160 million. And while the company posted a sizeable loss, it has the balance sheet capacity to accommodate this.
Zip's impressive first half sales growth was underpinned by another material increase in active customers. At the end of December, there were 5.7 million active customers on its platform globally. This was up 217% over the prior corresponding period.
One broker that was particularly impressed was Morgans. In response to its results, the broker retained its add rating and lifted its price target to $12.10. This compares to the latest Zip share price of $8.07.
