There are a large number of growth shares to choose from on the Australian share market. So many, it can be hard to decide which ones to buy ahead of others.
To help narrow things down, I have picked out two ASX 200 growth shares that have been rated as buys. They are as follows"
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Altium Limited (ASX: ALU)
The first ASX 200 growth share to look at is Altium. It is the electronic design-focused software provider behind the Altium Designer and Altium 365 platforms, the Octopart electronic parts search engine business, and the NEXUS design collaboration platform.
These businesses appear well-placed for growth over the next decade. This is due to the quality of the platforms and the growing internet of things and artificial intelligence markets. These rapidly growing markets are supporting an explosion in electronic devices globally. A testament to this is that it recently received and rejected a takeover proposal by US software giant Autodesk.
Credit Suisse is a fan of Altium. It currently has an outperform rating and $42.00 price target on the company's shares. This compares to the latest Altium share price of $34.10.
Xero Limited (ASX: XRO)
Another ASX 200 growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.
Xero platform's has evolved over the last few years from a basic accounting solution into a full service small business solution. This has gone down well with small to medium sized businesses globally, leading to significant growth in subscriber numbers.
This continued in FY 2021, with Xero reporting strong subscriber growth, which underpinned an 18% increase in revenue to NZ$848.8 million and a 39% jump in EBITDA to NZ$191.2 million.
Pleasingly, Xero still has an enormous runway for growth. This is being supported by the ongoing shift to cloud solutions, its international expansion, and its burgeoning app ecosystem. The latter has been bolstered by a number of bolt on acquisitions such as Planday, Tickstar, and Waddle.
Goldman Sachs is very positive on its future. In light of this, it recently reaffirmed its buy rating and lifted its price target to $165.00. This compares to the latest Xero share price of $142.22.
