There are a lot of growth shares for investors to choose from on the Australian share market.
To narrow things down, I have picked out three ASX growth shares that are highly rated. Here's what you need to know about them:
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Appen Ltd (ASX: APX)
The first ASX growth share to look at is Appen. Its vast team of crowd sourced experts prepare the data that goes into artificial intelligence (AI) and machine learning models. Appen does this for some of the biggest tech companies in the world such as Google and Facebook. And while demand has softened during the pandemic, it is expected to rebound once the crisis passes. Especially given how spending on AI is forecast to grow materially over the next decade.
The team at Citi remain positive on Appen. Even though they expect the company to fall short of expectations during the first half of FY 2021, they are holding firm with their buy rating and $18.80 price target.
ELMO Software Ltd (ASX: ELO)
Another ASX growth share to look at is ELMO. It is a HR and payroll platform provider that has been growing at a rapid rate over the last few years and even during the pandemic. Its popular software platform allows businesses to simplify and streamline a wide range of tasks. Demand has been strong, leading to strong recurring revenue growth. This was certainly the case in FY 2021, with its annualised recurring revenue (ARR) jumping 52.1% to $83.8 million. More strong growth is expected in FY 2022, with management providing ARR guidance of $105 million to $111 million
Earlier this month analysts at Morgan Stanley retained their overweight rating and $7.80 price target.
ResMed Inc. (ASX: RMD)
A final ASX growth share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. Thanks to its industry-leading products, wide distribution, and successful acquisitions, ResMed has been growing at a solid rate for over a decade. Pleasingly, this positive form looks set to continue over the long term. This is thanks to its significant market opportunity and the growing prevalence of sleep disorders.
Morgans is a big fan of ResMed. Earlier this month the broker put an add rating and $41.34 price target on its shares. It believes the company is well-placed to benefit from market share gains following a rival device recall.
