If you're a fan of growth stocks like I am, then I have some good news for you.
A couple of high quality shares with heaps of growth potential have recently been named as buys.
Here's why brokers are tipping them as buys:
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Corporate Travel Management Ltd (ASX: CTD)
Morgans is bullish on Corporate Travel Management and has recently named it as an ASX growth stock to buy.
The broker believes corporate travel booker is well-positioned for growth thanks to acquisitions made during the pandemic, its cost reductions, and its investment in technology. Its analysts commented:
Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).
Morgans has an add rating and $24.00 price target on its shares.
Objective Corporation Limited (ASX: OCL)
Goldman Sachs has tipped Objective Corp as an ASX growth stock to buy this week.
Its analysts believe the public sector software provider is well-placed for growth thanks to strong demand in a defensive sector. The broker is expecting this to lead to earnings per share growth above 20% in both FY 2024 and FY 2025. It said:
In our view OCL is well placed to deliver robust and defensive earnings growth driven by (1) R&D and new product cycles accelerating the contribution from newer products including Nexus, Build and RegWorks; (2) cycling of revenue/earnings headwinds from model transition away from perpetual / services revenue and towards subscriptions; and (3) cost management into FY24, with +350/+250bps margin expansion driving +23%/+32% FY24/25 EPS growth when comping trough FY23E earnings.
Goldman has a buy rating and $14.90 price target on Objective Corp's shares.
