Looking for some additions to your portfolio? Listed below are two ASX growth shares that have been given buy ratings.
Here's why analysts rate them highly right now:
Image source: Getty Images
Breville Group Ltd (ASX: BRG)
The first ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and Breville brands.
Thanks to its ongoing investment in product development, Breville's brands have been resonating extremely well with consumers for many years. This has been underpinning solid sales, earnings, and dividend growth.
The good news is that this solid form looks set to continue due to the strength of its product portfolio, favourable trading conditions and consumer preferences, and its ongoing global expansion.
Morgans is a big fan of Breville. While it acknowledges that its shares are not cheap, it believes the premium is justified given "the prospect for multi-year, globally-derived organic revenue growth at or above 10%."
The broker currently has an add rating and $34.00 price target on its shares.
ResMed Inc. (ASX: RMD)
Another ASX growth share that could be in the buy zone is ResMed.
It is a medical device company with a focus on sleep treatment and respiratory products that treat disorders including sleep apnoea and chronic obstructive pulmonary disease (COPD).
These are significant and growing markets to target. For example, upwards of 1 in 5 people are believed to suffer from sleep apnoea, with the vast majority currently undiagnosed. This bodes well for ResMed's future growth, particularly given its industry-leading products, high level of research and development, and wide distribution network.
Another positive for the company is the recent product recall by its biggest rival Philips. An update this week reveals that the Dutch healthcare giant has now expanded its recall to 5.2 million devices from 3 million to 4 million. This is expected to tie Philips up with repairs for some time and also damage its brand.
Macquarie is positive on the company. It currently has an outperform rating and $39.00 price target on ResMed's shares.
