2 excellent ASX growth shares tipped as buys

Breville Group Ltd (ASX: BRG) and this excellent ASX growth share have been tipped as buys. Here's why they are highly rated….

| 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

If you're wanting to boost your portfolio with a couple of growth shares, then you may want to consider the ones listed below.

Here's why these ASX growth shares have been rated as buys:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. The appliance manufacturer has been growing at a solid rate in recent years thanks to its international expansion.

This has been supported by favourable tailwinds brought about by COVID-19 such as more cooking and working at home. This has led to an increase in demand for whitegoods such as cooking equipment and coffee machines.

During the first half of FY 2021, Breville reported a 28.8% increase in revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million.

The good news is that more of the same is expected in the second half. After a stronger than expected first half, management is now guiding to earnings before interest and tax of $136 million. This is up from its previous guidance of $128 million to $132 million and will be a 20% increase year on year.

Even better, though, is that analysts at UBS believe its growth can continue for some time to come. This is due to product launches and its expansion into new markets.

UBS has a buy rating and $35.70 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

While trading conditions have been very tough for IDP Education because of the pandemic, there are signs that the worst is now over and a return to growth isn't far away.

In fact, the company revealed that in December testing volumes were broadly in line with those experienced in the final month of 2019 prior to the pandemic. This bodes well for the second half, particularly given the roll out of vaccines across the world.

Looking ahead, due to the company's strong financial position and growing software business, it appears well-placed to win a greater share of the market when things return to normal.

One broker that is confident in its future is Morgan Stanley. Last month it put an overweight rating and $30.00 price target on the company's shares. The broker expects IDP Education's earnings to bounce back strongly in FY 2022.

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 Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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

Concept image of a businessman riding a bull on an upwards arrow.
Growth Shares

3 ASX growth shares to buy before the next bull market

These shares could fare well in the next bull market. Here's what analysts are tipping as buys.

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

3 no-brainer ASX shares to buy with $200 right now

You don't need a brain to see that these shares could be top picks right now.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX growth stocks worth buying with $7,000 in your portfolio today

These stocks are all historic market beaters.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 ASX 200 shares with huge growth potential in the next decade

Analysts think these growth shares could be in the buy zone in July.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Growth Shares

Where I'd invest $5,000 into ASX 300 growth shares

These stocks have excellent growth potential.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »

A couple stares at the tv in shock, one holding the remote up ready to press.
Growth Shares

3 high-conviction ASX 200 stocks to buy and hold

Brokers think these shares are among the best to buy now.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Growth Shares

The smartest ASX growth stocks to buy with $3,000 right now

Analysts think these shares would be top picks for smart investors.

Read more »