Why Zip (ASX:Z1P) and this fantastic ASX growth share could be buys

These ASX shares could be in the buy zone…

| More on:

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

Looking for growth shares to buy? Then you might want to consider the two listed below.

Here's why they have been tipped as growth shares to buy:

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

Image source: Getty Images

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX growth share to look at is this leading Australian-based online platform and software as a service (SaaS) provider. Hipages' increasingly popular platform connects consumers with trusted tradies to simplify home improvement. It was on form in FY 2021, reporting a 22% year on year jump to $55.8 million. This was ahead of its guidance for the year. It also reported a 27% increase in its monthly recurring revenue (MRR) to $5.2 million. This annualises to $62.4 million.

This went down well with analysts at Goldman Sachs. In response they have retained their buy rating and lifted their price target to $4.35. It notes that Hipages currently captures <1% of a total $97 billion tradie business spend, representing a meaningful opportunity for growth.

Zip Co Ltd (ASX: Z1P)

A final ASX growth share to look at is Zip. This leading buy now pay later (BNPL) provider appears well-placed for growth over the 2020s due to its international expansion and the increasing popularity of the payment method with consumers and merchants. As well as having a $5 trillion market opportunity in the United States, the company has been expanding into the lucrative European and Asian markets through acquisitions. Combined, this gives Zip a significantly long runway for growth.

The team at Morgans remains very positive on Zip. In response to its recent full year results, the broker retained its add rating and lifted its price target to $8.87. This compares very favourably to the latest Zip share price of $6.90. Morgans continues to see longer term upside if Zip can execute on its ambitions of becoming a global payments player.

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. owns shares of and has recommended Hipages Group Holdings Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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 group of people in suits watch as a man puts his hand up to take the opportunity.
Growth Shares

A rare buying opportunity to buy 1 of Australia's top shares?

This stock has a lot to offer for investors wanting to beat the market…

Read more »

Red buy button on an Apple keyboard with a finger on it.
Growth Shares

2 little-known ASX shares that could make big returns

Experts are bullish about the potential of these stocks.

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.
Growth Shares

2 high-quality ASX stocks to buy and hold long term

Brokers see the dip as a compelling long-term buy with 33% to 44% upside.

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
Growth Shares

3 fantastic ASX shares that could help build long-term wealth

Analysts think these shares are in the buy zone right now.

Read more »

A fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Growth Shares

2 ASX 200 shares I rate as top buys for growth

These sizeable businesses could scale significantly from here…

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

Where to invest $7,000 in ASX shares during April

I’m optimistic that these ASX shares could beat the stock market.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Growth Shares

3 ASX 200 shares that could quietly compound for years

Let's see what sets these shares apart from the crowd.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Growth Shares

3 ASX shares tipped to grow 100% or more in the next 12 months

Here’s how much these exciting stocks could rise in the year ahead.

Read more »