Looking for a growth share or two to buy? If you are, you may want to look at the two listed below.
Here's why these ASX growth shares are rated highly right now:
Image source: Getty Images
Altium Limited (ASX: ALU)
The first ASX growth share to look at is Altium. It is the company behind the Altium Designer printed circuit board design (PCB) software.
Altium's software is regarded as the best in the industry and is used by companies and organisations such as BAE Systems, Dell, Microsoft, NASA, and Tesla for the design of the PCBs found in electronic devices.
The company also has complementary businesses including Nexus and Octopart. The latter is a search engine for electronic and industrial parts, which has been a very strong performer over the last 12 months thanks to supply chain disruption.
Looking ahead, management remains very positive on its outlook and continues to target US$500 million in revenue by 2026. This will be more than double FY 2022's revenue of US$220.8 million.
The team at Jefferies also appears confident on the company's outlook. Its analysts currently have a buy rating and $38.13 price target on its shares.
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth share that has been tipped as a buy is software company Readytech.
It is a leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.
It highlights that its software brings together the best in people management systems to help customers navigate complexity, while also delivering meaningful outcomes.
Like Altium, the company has set itself some bold growth targets. Readytech is aiming for FY 2026 revenue of $140 million to $160 million. The top end will be double FY 2022's revenue of $78.3 million.
Goldman Sachs appears confident the company will get there. In fact, it is forecasting revenue of $143 million in FY 2025, a year ahead of target. No forecast has been made for beyond that year, but the broker's estimates appear to imply that it expects Readytech to hit the top end of its guidance range.
Goldman Sachs has a buy rating and $4.30 price target on its shares.
