2 stellar ASX growth shares rated as buys

PointsBet Holdings Ltd (ASX:PBH) and this ASX growth share have been rated as buys. Here's why they are highly rated right now…

| More on:

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 looking for some growth shares to add to your portfolio, then you may want to take a look at the ones named below.

Here's why they have been tipped as buys:

graph coming from man's hand

Image source: Getty Images

Breville Group Ltd (ASX: BRG)

The first growth share to look at is Breville. It is one of the world's leading appliance manufacturers responsible for the Sage, Kambrook, Baratza, and eponymous Breville brands.

Thanks to the popularity of its brands in the ANZ market and internationally, Breville has been growing at a solid rate for many years.

Pleasingly, its growth has not only continued in FY 2021, it has accelerated. This has been driven by favourable tailwinds brought about by the working from home trend and its international expansion.

For the six months ended 31 December, Breville reported a 28.8% increase in revenue to $711 million. And on the bottom line, the company delivered a 29.2% increase in net profit after tax to $64.2 million.

The good news is that UBS appears confident this strong form can continue. Its analysts are bullish on its long term growth outlook thanks to product launches and its expansion into new markets. The broker currently has a buy rating and $35.70 price target on its shares.

PointsBet Holdings Ltd (ASX: PBH)

Another growth share to look at is PointsBet. It is a rapidly growing sports betting company with operations in the ANZ and US markets.

Sports betting is becoming increasingly popular thanks to the innovation of new product offerings such as same game multis and the ease of mobile betting. Combined with PointsBet's highly successful expansion into the US market, this has underpinned stellar sales growth since its IPO. 

For example, during the third quarter of FY 2021, PointsBet reported a 236% increase in turnover to $905.2 million. This was driven by a 137% jump in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million.

Goldman Sachs is confident of more of the same in the fourth quarter and beyond. This is thanks largely to its enormous opportunity in the United States market. Its analysts currently have a buy rating and $17.20 price target on its shares.

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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

Man pointing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These valuations are too good to ignore! I'd buy these ASX shares today

I think these businesses have very attractive futures.

Read more »

A man and woman jump in the air and high five with both hands on a road after running.
Growth Shares

2 battered ASX growth shares that could double in value or more

Brokers are strikingly bullish and tip up to 180% upside.

Read more »

Cropped shot of a young female scientist working on her computer in the laboratory.
Healthcare Shares

Could Telix shares be a millionaire-maker stock?

Telix looks a compelling growth story, with brokers eyeing more than 150% upside.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

2 top ASX shares I'd buy right now in this March madness

The valuations these businesses are now trading at are too good to ignore!

Read more »

A man has a surprised and relieved expression on his face.
Growth Shares

3 undervalued ASX stocks to consider buying immediately

Analysts are tipping huge upsides ahead for these undervalued shares.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Healthcare Shares

3 ASX healthcare stocks tipped to soar over 100% higher this year

These ASX shares are on my radar this week.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Growth Shares

2 ASX growth stocks down 40% to 60% to buy now

Big sell-offs can sometimes create compelling investment opportunities.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Growth Shares

Brokers rate these 2 top ASX shares as buys in March

Here’s why experts are confident about these businesses for the long-term.

Read more »