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3 growth shares analysts are tipping to rocket higher

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Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below.

Here’s what you need to know about these growth shares:

The first ASX growth share to look at is IDP Education. It is a provider of English language testing and international student placement services. IDP was hit hard during the pandemic but has bounced back strongly in FY 2022. For example, last month, the company delivered a 47% increase in revenue to a record of $397 million and a 70% lift in net profit after tax to $52.9 million. This was despite parts of the company still suffering from COVID restrictions. Morgan Stanley was pleased with its performance. In response the result, the broker put an overweight rating and $40.20 price target on its shares.

Another growth share that could be a buy is NEXTDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. This is thanks to its world class network of centres across Australia and its expansion into edge centres and the Asian market. Citi is a fan and currently has a buy rating and $14.55 price target on NEXTDC’s shares. It believes the conversion of Hyperscale customer commitments in Sydney and Melbourne will be the next key growth catalyst. It commented: “We maintain our Buy call and see the conversion of Hyperscale customer commitments in Sydney and Melbourne as the next key catalyst (likely in 1H23e).”

A final ASX growth share to look at is Nitro Software. It is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a software-as-a-service solution. Goldman Sachs is very positive on its long term outlook. It commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.” The broker has a buy rating and $2.60 price target on its shares.

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