2 fantastic ASX growth shares named as buys this week

These ASX growth shares have been named as buys…

| More on:
Big green letters spell growth, indicating share price movements for ASX growth shares

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

Are you wanting to add some growth shares to your portfolio this month? If you are, then you may want to check out the two listed below.

Here's why analysts are tipping these ASX shares as buys:

Bapcor Ltd (ASX: BAP)

The first ASX growth share to look at is Bapcor. It is the Asia Pacific region's leading provider of vehicle parts, accessories, equipment, service and solutions.

Earlier this week, Bapcor released its full year results and revealed strong sales and profit growth. For the 12 months ended 30 June, the company reported a 20.4% increase in revenue to $1,761.7 million and a 46.5% jump in pro forma net profit after tax to $130.1 million.

This was driven by growth across the business. Bapcor's CEO & Managing Director, Darryl Abotomey, explained: "As was the case in the first half of the year, every one of our business segments increased revenue and earnings, capitalising on the increased demand during the period while at the same time also delivering major projects across the group that will set us up for continued success."

And while management's guidance for FY 2022 was somewhat cautious, the team at Credit Suisse remain positive.

In response to the release, the broker has retained its outperform rating and trimmed its price target ever so slightly to $9.20.

Breville Group Ltd (ASX: BRG)

Another ASX growth share to look at is Breville. It is the Australian appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Breville was on form in FY 2021 and has also just delivered a stellar full year result. For example, for the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. The latter was ahead of its upgraded guidance.

The company's CEO, Jim Clayton, explained that its international expansion and the work from home initiative were key drivers of its strong result.

He commented: "A fairly remarkable year for the Group with accelerated demand experienced in the first half carrying through to the second half. Increased consumer demand, driven by the need/requirement to work from home, coupled with our continued geographic expansion, outweighed logistical challenges and a weakening USD."

In response to the result, Morgan Stanley retained its overweight rating and lifted its price target to $36.00. It expects its strong form to continue and is forecasting further strong earnings growth in FY 2022.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »

A couple stares at the tv in shock, one holding the remote up ready to press.
Growth Shares

3 high-conviction ASX 200 stocks to buy and hold

Brokers think these shares are among the best to buy now.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Growth Shares

The smartest ASX growth stocks to buy with $3,000 right now

Analysts think these shares would be top picks for smart investors.

Read more »

A laughing woman wearing a bright yellow suit, black glasses and a black hat spins dollar bills out of her hands signifying the big dividends paid by BHP
Growth Shares

2 Australian stocks that could turn $10,000 into $100,000

Let's see why these shares could be destined for bright long-term futures.

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Growth Shares

2 ASX 200 shares that could be top buys for growth

I’m bullish about these shares. Here’s why.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Share Market News

The smartest growth stock to buy with $5,000 right now

This growth stock has the potential to keep on keeping on. 

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Growth Shares

2 explosive ASX shares that could go parabolic

These shares could be destined for big things in the future.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 exciting ASX 200 growth shares to buy in July

Brokers think these shares could be top picks for growth investors.

Read more »