The good news for growth investors is that there are plenty of quality options for them on the Australian share market.
Two options to consider are listed below. Here's why they are highly rated right now:
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Megaport Ltd (ASX: MP1)
The first ASX growth share to look at is Megaport. It is a leading provider of elastic interconnection services globally. The company utilises software defined networking (SDN) to allow customers to rapidly connect their network to other services across the Megaport Network. This means that services can be directly controlled by customers via mobile devices, their computer, or its open API.
The shift to the cloud has led to increasing demand for Megaport's services. As a result, it now connects more than 2,117 customers in over 700 enabled data centres globally. Among its customers are some of the largest companies and organisations around the world. This includes Amazon, AT&T, the BBC, BHP Group Ltd (ASX: BHP), General Electric, Microsoft, SpaceX, and Tesla.
As of March 31, Megaport was generating monthly recurring revenue of $6.8 million from these customers. This was an 8% increase since the end of December, and annualises to $81.6 million.
Positively, with the structural shift to the cloud still having a long way to run and the company recently launching the Megaport Virtual Edge offering, it looks well-positioned to continue its strong form.
UBS is positive on the company's future. Last month it put a buy rating and $17.10 price target on its shares.
Zip Co Ltd (ASX: Z1P)
Another ASX growth share that is highly rated is Zip. It is of course one of the world's leading buy now pay later (BNPL) providers with operations across several continents.
Zip has been tipped to grow strongly in the coming years thanks to its global expansion and its US-based QuadPay business. The latter has been growing at a rapid rate, outshining the rest of the business in recent quarters. The good news is that only an estimated 10% of Americans have tried BNPL. This gives it a significant runway for growth in the coming years as penetration rates increase.
Especially given the increasing popularity of its Tap and Pay offering, which allows consumers to use Zip even if the merchant doesn't offer it. It is partly for this reason that analysts at Shaw and Partners are so positive on the company.
The broker recently put a buy rating and lofty $16.00 price target on its shares. This is more than double where the Zip share price trades today.
