2 top ASX growth shares that could be buys

Bailador Technology Investments is one ASX growth share to consider.

| 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

There are some top ASX growth shares that could be worth looking at.

Businesses that are growing profit across the world could certainly be worth looking at. Plenty of ASX shares are focused on the Australian and New Zealand markets.

However, there are businesses that have global growth goals. The potential growth is why these two companies are potential quality ideas to consider:

ASX shares upgrade buy Woman in glasses writing on buy on board

Image Source: Getty Images

Premier Investments Limited (ASX: PMV)

Premier Investments is a retail business that owns a number of brands including Just Jeans, Jay Jays, Peter Alexander, Smiggle and Portmans. The ASX share also owns substantial amounts of both Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

The ASX share has stores across the world including the UK, Republic of Ireland and Asia, as well as Australia.

Despite store closures for periods of FY21, the business is expecting to report in FY21 that its retail operations generated earnings before interest and tax (EBIT) of between $340 million to $360 million. Year on year, that would be growth of between 82% to 92%.

There are four different reasons for the expected strong EBIT growth according to management. There was strong customer demand for the winter product ranges across all brands, strong online sales growth and highly profitable online performance, exceptional gross profit margin expansion in the second half of FY21 with an increase of 380 basis points and, finally, a strong cost control culture including continuing to reach agreements with landlords that appropriately rebase the group's rent expense.

With Smiggle, the ASX share is expecting the brand to rebound with "maximum" EBIT growth as sales recover. The company plans to continue to significantly invest in Smiggle's "highly profitable" global online presence.

According to Commsec, the Premier Investments share price is valued at 21x FY22's estimated earnings.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is a business that aims to invest in expansion-technology businesses at attractive valuations.

Its current portfolio includes names like Siteminder, Instaclustr, Straker Translations Ltd (ASX: STG), Nosto and Standard Media Index. Global hotel booking business Siteminder may actually be nearing an initial public offering (IPO).

It's also on the lookout for new technology businesses that have good growth potential that just needs funding to help it grow more. For example, in July 2021, it invested $5.5 million into the digital healthcare platform InstantScripts which allows Aussies to access doctor care and routine prescription medication.

The targets it's looking at typically have revenue of between $5 million to $50 million, a proven business model, a globally addressable market and provides minority protections with board representation. The ASX share also integrates ESG principles into its investment thoughts.

FY22 is expected to be a significant year for new investments and profitable sales of some of its holdings.

It's evaluating "numerous opportunities" to invest additional capital and realise existing investments.

At the end of August 2021, its pre-tax net tangible assets (NTA) per share was $1.51. That compares to the current share price of $1.46.

Motley Fool contributor Tristan Harrison 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 Bailador Technology Investments Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited and Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy hump day session for the ASX.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Scientists working in the laboratory and examining results.
Opinions

3 reasons to buy CSL shares today

The ASX biotech company has great growth potential this year.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Brightstar, EQ Resources, Novonix, and Pro Medicus shares are falling today

These shares are under pressure on hump day. But why?

Read more »

A happy family of four on holidays stand on a jetty and cheer.
Broker Notes

Down 40% in 2026, should you buy the big dip in Life360 shares?

A leading analyst offers his outlook for Life360 shares.

Read more »

Buy and sell on yellow paper with pins on them and several share price lines.
Broker Notes

Sell alert! Why this expert is calling time on Nuix and Brainchip shares

A leading analyst forecasts more pain to come for Brainchip and Nuix shares. But why?

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why EOS, Humm, New Hope, and Sims shares are storming higher today

These shares are having a good session on hump day. But why?

Read more »

a man lies on his back on grass with his eyes shut and a contented look on his face as though he is dreaming
Broker Notes

With global populations ageing, are ResMed shares a good buy today?

A leading expert delivers his verdict on the outlook for ResMed shares.

Read more »