If you have room for some new portfolio additions, then it could be worth considering the two ASX growth shares listed below.
Here's what you need to know about these buy-rated shares:
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NextDC Ltd (ASX: NXT)
The first ASX growth share that has been tipped as a buy is data centre operator NextDC.
Goldman Sachs is positive on the company and has just reiterated its buy rating with a $13.60 price target. It believes NextDC is well-placed for strong growth over the next decade.
This morning, the broker commented:
We continue to believe NXT hybrid model puts the company in a strong position to continue gaining share in Enterprise while winning its fair share of hyperscale contracts, supporting a strong earning trajectory over the next decade. This is consistent with its recent bullish AGM commentary expecting to convert its record backlog within the next 6-12 months (i.e. May – Nov 2023). We also expect a detailed update on NXT Asia ambitions in 2023, which although riskier, is well flagged by the company
ResMed Inc. (ASX: RMD)
Another ASX growth share that has just been tipped as a buy is ResMed. It is a medical device company with a focus on sleep treatment solutions.
Morgans is a fan of ResMed and has put an add rating and $37.24 price target on its shares. The broker likes the company due to its strong position in the sleep treatment market and its huge potential in the out of hospital care market.
It commented:
We continue to believe the overall fundamentals remain sound and the company is well positioned, with margin headwinds expected to abate slowly. […] We view RMD as increasingly well positioned as a leading SaaS provider of out of hospital care, with strong underlying sales momentum (+7%) expected to continue, and integration of German-based Medifox Dan (only 6 weeks in 2Q; EPS neutral) offering end-to-end software for nursing and HME customers in Germany.
