If you're a fan of growth shares then you'll be pleased to know there are plenty of quality options to choose from on the Australian share market.
Two high quality options that have recently been given buy ratings are listed below. Here's why these ASX growth shares are rated highly right now:
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ResMed Inc. (ASX: RMD)
The first ASX growth share to look at is ResMed. It is a sleep treatment-focused medical device company. Thanks to its industry-leading products, growing software business, and the increasing awareness of sleep disorders, ResMed has been growing at a strong rate for a good number of years.
Pleasingly, it still has a significant market opportunity to grow into over the next decade and beyond. Management estimates that there are ~1 billion people suffering from sleep apnoea worldwide, with only ~20% of these sufferers currently diagnosed. It also looks well-placed to benefit from the shift to home healthcare and demand for its software solutions.
Morgans is a fan of ResMed. It currently has an add rating and $40.80 price target on the company's shares.
Xero Limited (ASX: XRO)
Another ASX growth share to look at is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.
Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem. The latter has significant monetisation potential.
Goldman Sachs is very positive on the company. It has a buy rating and $158.00 price target on its shares. Its analysts believe Xero is capable of delivering strong revenue growth over multiple decades.
