Are you looking to add a growth share or two to your portfolio? If you are, then the two listed below could be worth considering.
Here's why these growth shares are rated as buys:
Appen Ltd (ASX: APX)
The first ASX growth share to look at is Appen. It is a developer of high-quality, human annotated datasets for artificial intelligence (AI) and machine learning models. It undertakes these activities through a team of over one million skilled contractors that collectively have expertise across countless languages.
While demand for its offering has softened during the pandemic, management appears confident it will rebound in the near future as major investments by tech giants in AI and machine learning resumes.
The team at Citi appear confident this will happen and remain bullish on its long term outlook. The broker currently has a buy rating and $18.80 price target on Appen's shares
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is Australia's leading online retailer of furniture and homewares. The company runs a drop-shipping model which sees almost 200,000 different products sent directly to customers from suppliers. This is complemented by a growing private label range which is sourced directly by Temple & Webster from overseas suppliers.
This business model is working very well for the company. So much so, last month Temple & Webster released its full year results and revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million.
Positively, the shift to online shopping is still only getting started in this category. This and its leadership position give the company a significant runway for growth over the next decade and beyond.
Morgan Stanley is positive on the company. It currently has an overweight rating and $16.00 price target on its shares.
