Are you looking to add a growth share or two to your portfolio? Then take a look at the two ASX shares listed below.
Here's why they could be growth shares to buy right now:
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ELMO Software Ltd (ASX: ELO)
The first ASX growth share to look at is ELMO. It is a cloud-based human resources and payroll software company that provides businesses with a unified platform to streamline a wide range of processes.
ELMO has been a strong performer during the pandemic and looks well-placed to continue this trend over the next decade. This is thanks to strong demand for its platform and recent acquisitions. The latter has bolstered its offering and expanded its addressable market.
Earlier this week Morgan Stanley put an overweight rating and $9.70 price target on its shares. This was in response to the release of its half year results on Tuesday. Those results revealed a 42.8% increase in Annualised Recurring Revenue (ARR) to a record $74.2 million.
Nearmap Ltd (ASX: NEA)
Another ASX growth share to look at is Nearmap. It is a leading aerial imagery technology and location data company. Its platform provides businesses in the ANZ and North American markets with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.
Nearmap appears well-placed for growth thanks to its recent capital raising, new growth initiatives, geographic expansion, and the launch of its latest AI product. So much so, management is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
Analysts at Goldman Sachs are positive on the company and were pleased with its half year results this week. In response to them, the broker put a buy rating and $2.95 price target on Nearmap's shares.
