2 growing ASX shares that deserve your attention

Here's why investors might want to get better acquainted with these growing ASX shares…

| More on:
ASX shares profit upgrade chart showing growth

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

There are a lot of options for investors to choose from on the Australian share market.

Two that could be worth getting better acquainted with are listed below. Here's what you need to know about these growing companies:

Nearmap Ltd (ASX: NEA)

The first ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in Australia and North America.

Nearmap's products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means users can undertake virtual site visits anywhere there is coverage without leaving the home or office. The company notes that this enables informed decisions, streamlined operations, and meaningful cost savings.

Another positive is that Nearmap has recently bolstered its offering with the launch of several new products and add-ons. This includes an artificial intelligence product which has significant potential.

And while there are some legal issues hanging over the company, management believes the allegations are without merit and will vigorously defend against the complaint. Some recent and significant insider buying appears to demonstrate their confidence in this.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $3.20 price target on the company's shares. This compares to the latest Nearmap share price of $1.87.

Nitro Software Ltd (ASX: NTO)

Another ASX share to look at is Nitro. It is a global document productivity company helping businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation. This is achieved by providing PDF productivity and eSigning for all in a single, affordable solution.

At present, Nitro is helping more than 11,000 businesses globally drive digital transformation. This includes 68% of the Fortune 500 and three of the Fortune 10.

From these customers, the company reported a 64% increase in annual recurring revenue (ARR) to $27.7 million in FY 2020. This was driven by new customer growth and 117% net revenue retention. This means it not only retained customers, it generated 17% more revenue from them.

Positively, similarly strong growth is expected in FY 2021. Management has provided ARR guidance of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%. This is still well short of a PDF document productivity and eSigning total addressable market (TAM) estimated to be worth $28 billion.

Morgan Stanley is bullish on the company. Its analysts currently have an overweight rating and $3.70 price target on the company's shares. This compares to the latest Nitro share price of $3.31.

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Nitro Software Limited. 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

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Growth Shares

Invest $10,000 into these Australian shares in December

Analysts think these shares could generate big returns for investors.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Growth Shares

2 of the best ASX growth shares money can buy

Bell Potter rates these growth shares very highly. But why?

Read more »

A smiling travel agent sitting at her desk working for Corporate Travel Management
Growth Shares

My 2 best ASX growth shares to buy in November

Growth continues to catch the market's attention.

Read more »

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Growth Shares

Buy these ASX growth shares for 16% to 25% returns

Analysts are saying good things about these buy-rated shares.

Read more »

two children squat down in the dirt with gardening tools and a watering can wearing denim overalls and smiling very sweetly.
Growth Shares

How to maximise $10,000 by investing in 2 ASX growth shares

Here are my best growth ideas on the ASX right now.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

These ASX 200 growth shares could rise 50% to 60%

Big returns could be on offer from these growing companies according to analysts.

Read more »

Sports fans looking at smart phone representing surging pointsbet share price
Growth Shares

Up 111% in six months, this soaring ASX share is backed to keep rising

One fund manager thinks this ASX growth share can continue its phoenix performance.

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

These ASX growth shares are being tipped to smash the market

Returns of 14% to 68% could be on the cards for buyers of these shares according to brokers.

Read more »