Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.
Two such shares are named below. Here's why analysts are positive on them:
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NEXTDC Ltd (ASX: NXT)
The first growth share that could be a buy is NEXTDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. Particularly given its world class network of centres and expansion into edge centres (regional data centres) and the Asia market. The latter has seen the company open up offices in Singapore and Tokyo. These markets could provide NEXTDC with a long growth runway.
Citi is a fan and currently has a buy rating and $14.55 price target on NEXTDC's shares.
Xero Limited (ASX: XRO)
Another ASX growth to look at is this cloud-based accounting solution provider to small and medium sized businesses. Xero has been growing at a quick rate in recent years and has continued this trend in FY 2022. During the first half, it reported a 23% increase in subscribers to 3 million and a 29% lift in annualised monthly recurring revenue (AMRR) to NZ$1,132 million. Positively, Xero's subscriber numbers are still well short of its total addressable market of 45 million. This and its plan to monetise its growing user base give it a very long growth runway.
Goldman Sachs is bullish on Xero. Its analysts currently have a buy rating and $135.00 price target on its shares.
