3 outstanding ASX growth shares

ELMO Software Ltd (ASX:ELO) and these ASX growth shares are growing quickly and could continue to do so. Here's what you need to know…

| More on:
A hand holding a graph trending up, indicating a surging share price on the ASX

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

The Australian share market is home to a number of quality companies with solid growth prospects.

Three that have been tipped to grow at stronger than average rates over the coming years are listed below. Here's why analysts think investors should be buying their shares this month:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is Australia's leading online beauty retailer. At the last count, the company had almost 800,000 active customers on its platform.

While the company has been growing very strongly during the pandemic, it still has a very long runway for growth. Especially given the relatively low penetration of online beauty sales relative to other Western markets. This puts it in a great position to continue growing strongly in a post-pandemic world.

Morgan Stanley currently has an overweight rating and $8.75 price target on its shares.

Breville Group Ltd (ASX: BRG)

Kitchen appliances might not seem like the most exciting thing to invest in, but try telling that to its shareholders. Over the last decade the Breville share price has absolutely smashed the market with incredible returns.

The good news is that due to acquisitions, favourable consumer trends, and its global expansion, Breville appears well-placed to continue this positive form over the next decade.

One broker that thinks highly of Breville is Morgans. It currently has an add rating and $33.90 price target on its shares.

ELMO Software Ltd (ASX: ELO)

Another company that has been growing quickly is ELMO. It is a HR and payroll platform provider that allows businesses to simplify and streamline a wide range of tasks.

This has underpinned strong recurring revenue growth over the last few years. And thanks to acquisitions and its large addressable market, more of the same is expected in the coming years.

Earlier this week analysts at Shaw & Partners initiated coverage on the company with a buy rating and and $9.00 price target.

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 Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended Elmo Software. 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

Three happy office workers cheer as they read about good financial news on a laptop.
Growth Shares

5 ASX growth shares to buy and hold

Analysts think these shares could be top picks for investors looking for growth options.

Read more »

Two players on a field pump their fists in the air, indicating two of the best
Growth Shares

The ultimate buy and hold ASX 200 shares for long-term investors

These buy-rated shares could be great options for investors with a long time horizon.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 unstoppable ASX shares to buy and hold for the next decade

These shares are going places over the remainder of the decade and beyond.

Read more »

Four piles of coins, each getting higher, with trees on them.
Growth Shares

2 high-growth ASX shares to buy today: brokers

These stocks have a strong growth outlook.

Read more »

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

2 top-quality ASX shares to buy for beginner investors

These stocks could be a great place to start investing.

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Growth Shares

Here's why these two ASX 300 shares are great ones to own

These businesses are two of the fastest-growing stocks in the ASX 300 and are liked by fund manager WAM.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Growth Shares

3 ASX growth shares you'll wish you bought in June

Analysts think these shares could be destined for big things in the future.

Read more »

Father and daughter with hands on a small plant.
ETFs

Focused on growth? Here are 3 ASX ETFs to consider

Growth investors must ignore the current market noise about tariffs and focus on the long-term horizon.

Read more »