Are you look for a growth share to buy next month? Three that could be worth considering are listed below.
All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here's what you need to know about these ASX growth shares:
Image source: Netflix
Adore Beauty Group Limited (ASX: ABY)
Adore Beauty is Australia's leading online beauty retailer. It has been growing very strongly during the pandemic. So much so, it almost tripled its operating earnings to $5.2 million during the first half of FY 2021. Despite this, the Adore Beauty share price recently hit a record low. This has been driven by broad weakness among ecommerce shares. One broker that believes it has a long runway for growth and sees this weakness as a buying opportunity is UBS. Earlier this month it put a buy rating and $6.20 price target on its shares.
Megaport Ltd (ASX: MP1)
Another growth share to look at is Megaport. It is an elasticity connectivity and network services company. Its increasingly popular service allows businesses to increase and decrease their available bandwidth in response to their own demand requirements. Demand has been strong, leading to Megaport growing at a rapid rate over the last few years. Pleasingly, this has continued in FY 2021. Earlier this month it released its third quarter update and revealed an 8% quarter on quarter increase in monthly recurring revenue (MRR) to $6.8 million. This went down well with UBS, which retained its buy rating and lifted its price target to $17.10.
Xero Limited (ASX: XRO)
A final growth share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution. It has been growing strongly over the last few years thanks to its international expansion, acquisitions, and the transition to the cloud. Positively, all these drivers are still in place and should be supported by its burgeoning app ecosystem. If the company can monetise this ecosystem and continue its international expansion, it could support decades of strong revenue growth according to Goldman Sachs. The broker currently has a buy rating and $153.00 price target on its shares.
