Looking for growth shares to buy? Then you might want to consider adding the two listed below to your portfolio.
Here's why they have been tipped as growth shares to buy:
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PointsBet Holdings Ltd (ASX: PBH)
The first ASX growth share to look at is PointsBet. It is one of the world's leading sports betting companies with operations in the ANZ and US markets.
PointsBet has been growing at an explosive rate over the last couple of years thanks to the growing popularity of mobile sports betting and innovative products like same game multis.
Pleasingly, the company's growth is showing no signs of slowing. For example, during the third quarter, the company reported a 236% increase in turnover to $905.2 million. This comprises Australian turnover of $423.2 million (up 137%) and US turnover of $482 million (up 431%).
Even better, though, was that its net win metric is growing at an even quicker rate. During the quarter, PointsBet's net win lifted 246% to $64.9 million. This was driven by a 147% increase in Australian net win to $38.2 million and a 716% jump in US net win to $26.7 million.
And with the company only scratching at the surface of its massive US market opportunity, it looks well-placed to continue its growth in the coming years. Especially given recent partnerships with sports teams and broadcasters and the easing of gambling restrictions across the US.
Goldman Sachs is very positive on the company. It currently has a buy rating and $17.20 price target on its shares.
Zip Co Ltd (ASX: Z1P)
Another ASX growth share to look at is this buy now pay later (BNPL) provider.
Like PointsBet, Zip has been growing at a rapid rate in recent years. This has also been driven largely by growth in Australia and the United States. For example, during the third quarter, Zip's US based QuadPay' business reported transaction volume growth of 234% to $762 million, revenue growth of 188% to $54.4 million, and customer growth of 674,000 or 153% to 3.8 million.
The good news is that this is still only a tiny fraction of a $5 trillion market opportunity in the United States, which gives Zip plenty of room for growth in the future.
In addition to this, the company has just extended its total addressable market by expanding into mainland Europe and the Middle East via acquisitions. If these acquisitions are half as successful as the QuadPay purchase, then the company's growth could be given a huge boost.
Morgans is a fan of Zip. Its analysts currently have an add rating and $10.39 price target on its shares.
