If you're a fan of growth shares, then you may want to look closely at the two shares listed below.
Here's why these could be growth shares to buy:
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Altium Limited (ASX: ALU)
The first growth share for investors to consider buying is Altium. It is an electronic design software provider behind the Altium 365 and Altium Designer platforms. These platforms are the leaders in their field and are now aiming to dominate their market. A testament to their quality is that they are used by companies such as Tesla, BAE Systems, Amazon, Facebook, and Dell.
And given the way the Internet of Things (IoT) and AI markets are underpinning an explosion of electronic devices globally, demand for electronic design software is expected to continue to grow at a strong rate for a long time to come. This bodes well for Altium thanks to its leadership position.
The team at Bell Potter is bullish on Altium and believes it could outperform its guidance in FY 2022. It currently has a buy rating and $40.00 price target on the company's shares.
Megaport Ltd (ASX: MP1)
Another ASX growth share that could be in the buy zone is this leading cloud connectivity and networking solutions provider.
Megaport has been growing at a solid rate for a number of years. This has been driven by its first mover advantage in a market benefiting from two long-term structural tailwinds. These are the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).
The good news is that these structural tailwinds will be blowing for some time to come, giving Megaport a significant market opportunity to grow into. In fact, the team at Goldman Sachs notes that it has exposure to $129 billion per annum spent on fixed enterprise networking across its current geographies.
It is for this reason that the broker recently initiated coverage on Megaport with a buy rating and $20.00 price target.
