One thing the Australian share market isn't short of is growth shares. At present, there are plenty of companies that appear well-positioned to grow at an above-average rate over the next decade.
But which ones should you consider adding to your portfolio? Three that are highly rated are listed below:
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IDP Education Ltd (ASX: IEL)
IDP Education could be a growth share to look at. It is a provider of international student placement services and English language testing services. Although demand for its services has softened during the pandemic, it has been tipped to bounce back strongly once trading conditions return to normal. After which, analysts at UBS expect IDP Education's growth to accelerate as it emerges as a stronger player with a quality technology business differentiating it from the remaining competition. Earlier this month UBS put a buy rating and $28.25 price target on its shares.
NEXTDC Ltd (ASX: NXT)
Also worth a closer look is NEXTDC. It is one of the Asia-Pacific region's leading data centre operators with a growing number of world class centres in key locations across Australia. Thanks to insatiable demand for data centre capacity due to the structural shift to the cloud, NEXTDC has been growing its sales and operating earnings at a solid rate for years. The company is now looking to bolster its growth by expanding into the Asian market. If this is a success, it could provide it with a significant growth runway. Citi currently has a buy rating and $14.45 price target on the company's shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is Australia's leading online furniture and homewares retailer which has been benefiting greatly from the shift to online shopping. The good news is that this shift still has a long way to go, which bodes well for the company given its leadership position. Credit Suisse is positive on the company and sees scope for the furniture industry to reach ~13% in online penetration by FY 2025. The broker currently has an outperform rating and $12.54 price target on its shares.
