Looking for a growth share or two to buy this month? Two that could be worth considering are listed below.
Both have been tipped to grow strongly over the 2020s. Here's what you need to know about them:
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Appen Ltd (ASX: APX)
The first growth share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). These datasets are integral for ML and AI models. Without high quality data, a model will never reach its potential.
Prior to the pandemic, Appen had been growing at an explosive rate thanks to strong demand for its services from many of the biggest tech companies in the world. Unfortunately, during the pandemic, these tech giants put a lot of their projects on hold, leading to a sharp reduction in demand for Appen's services. The good news is that there are signs that demand is rebounding strongly. For example, Facebook has just announced plans to increase its AI and ML spending materially.
The team at Citi remains very positive on Appen. The broker currently has a buy rating and $17.10 price target on the company's shares.
IDP Education Ltd (ASX: IEL)
Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services.
It also experienced a reduction in demand for its services during the pandemic. However, this demand has come back with a bang. IDP Education recently released a first quarter update which revealed that IELTS volumes were up 84% on the same period last year.
Another positive is that the company has recently bolstered its offering with a major acquisition in India. This makes it the clear leader in the hugely important and lucrative market. All in all, combined with its strong market position in other key markets and its growing software business, the future looks very bright for IDP Education after a couple of difficult years.
Morgan Stanley is very positive on the company's prospects. It currently has an overweight rating and $40.20 price target on its shares.
