Looking for ASX growth stocks to add to your portfolio? Here are two names that have several buy ratings from brokers.
These are ResMed Inc (ASX: RMD) and DroneShield Ltd (ASX: DRO). Both are in completely different fields, but both are raising eyebrows with their growth outlooks.
Are they candidates for your portfolio? Let's dive in and see.
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ASX growth stocks rated as buys
The first ASX growth stock on the list is ResMed, whose share price is up more than 1% so far this year after a sharp sell-off since January.
Shares in the respiratory device company peaked at $40.50 on January 30 before turning south. They now trade at $37.28 as I write.
Citi upgraded ResMed to a buy this week with a price target of $44. It joins eighteen other brokers who are bullish on ResMed, versus nine neutral, and one recommending sell, according to CommSec.
Consensus estimates forecast ResMed's net profits to grow by around 255% by FY27, putting it in the ASX growth stock category.
These forecasts also see a dividend increase of more than 10% over the same period, with payouts projected to reach 36.5 cents per share.
Meanwhile, the projected price target is $43 per share.
When you tally in the forward dividend yield of 1%, the implied upside potential on this is over 15.5% at the time of writring.
DroneShield still in favour
DroneShield was one of the high-flying darlings last year, with the ASX growth stock running from 70 cents to a peak of $2.60 from March to July.
Shares have come right down from that level and fetch 90 cents apiece at the time of writing
The counter drone technology business posted its full-year results last month, with revenues up 6% to $57.5 million, and an operating loss of about $9 million.
But markets are forward looking, and DroneShield's management announced it already has $52 million in contracted revenue for 2025.
This accounts for 90% of its 2024 revenue just a few months in. The ASX growth stock also has a $1.2 billion sales pipeline to work through.
Shares are up more than 43% in the past month, with a 16% jump in the past week alone.
Bell Potter is bullish on the stock and rates it a buy. The price target is $1.10, which represents a 22% upside from the time of writing.
As my colleague James reported, the broker reckons DroneShield is well positioned this year, thanks to its growth outlook.
Meanwhile, consensus estimates also rate it a buy, with an average price target of $1 per share.
Foolish takeaway
Brokers rate these 2 ASX growth stocks highly for 2025. They are also in completely different economic domains.
ResMed is in healthcare, and DroneShield serves the defence industry. Only time will tell what this year brings for both companies.
DroneShield is up 40% this past year, while ResMed is up 34%.
