If you're on the lookout for some growth shares, then you might want to look at the ones below. They are quality businesses which have been tipped as buys recently.
Here's what you need to know about these top ASX growth shares:
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Altium Limited (ASX: ALU)
The first ASX growth share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platforms.
In addition to this, the company has the Octopart search engine and the Nexus collaboration platform supporting the growth of the core business.
All these businesses have exposure to PCB design. And with PCBs found inside almost all electronic devices, they look well-placed to benefit from the explosion in electronic devices globally. This is being underpinned by the growing Internet of Things and artificial intelligence markets.
A note out of Credit Suisse reveals that the broker currently has an outperform rating and $42.00 price target on its shares. This compares to the latest Altium share price of $35.09.
Xero Limited (ASX: XRO)
Another ASX growth share to consider is Xero. It is a leading cloud-based full-service business and accounting solution provider which has been growing at a rapid rate in recent years.
Impressively, this strong form continued in FY 2021 despite COVID-19. Thanks to a 20% increase in subscribers to 2.74 million, Xero reported an 18% increase in revenue to NZ$848.8 million.
The great news is that 2.74 million subscribers is still well short of a cloud accounting subscriber total addressable market estimated at 45 million. This gives Xero and its world class platform a very long growth runway over the next decade and beyond.
The team at Goldman Sachs are positive on Xero. Thanks to its international expansion, the ongoing shift to the cloud, and the monetisation of its app ecosystem, Goldman believes the company could have a multi-decade runway for strong revenue growth. The broker has a buy rating and $165.00 price target on its shares.
