If you're a growth investor, then you're in luck. The Australian share market is home to a large number of companies with the potential to grow strongly in the future.
Two top ASX growth shares that have been given buy ratings are listed below. Here's what you need to know about them:
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Altium Limited (ASX: ALU)
The first ASX growth share to take a look at is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer and Altium 365 platforms.
These platforms are used in the design process of everything from automotive and aerospace to consumer electronics and medical devices.
While COVID-19 has softened demand for its offering, it appears well-placed to bounce back very strongly in a post-pandemic world. This is thanks to industry tailwinds, such as the Internet of Things and artificial intelligence booms, which are underpinning the proliferation of electronic devices globally.
One leading broker that is positive on the company is Citi. It currently has a buy rating and $33.50 price target on its shares. The broker notes that website traffic data is pointing to favourable trends for both its Altium 365 platform and Octopart search engine.
Kogan.com Ltd (ASX: KGN)
Another ASX growth share to look closely at is Kogan. It is a growing ecommerce company which has been benefitting greatly from the shift to online shopping. This has particularly been the case over the last 12 months after the pandemic forced shoppers online, many for the first time.
This has underpinned a significant increase in customer numbers, putting Kogan in a great position for long term growth. Not least given the value accretive acquisitions it has made, such as fellow online retailer Mighty Ape for $122 million.
And while the company is going through a difficult spot as tailwinds ease and inventory builds up, this appears to be more than reflected in its recent share price performance.
Analysts at Canaccord Genuity believe the recent weakness in the Kogan share price is a buying opportunity. They recently put a buy rating and $18.00 price target on its shares.
