Morgans Identified Two Promising ASX Growth Stocks to Buy Right Now

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Australia’s largest national full-service stockbroking and wealth management network named two ASX growth companies to add to your investment portfolio.

Experts and analysts have been bullish on two specific ASX shares. The first one is IDP Education Ltd (ASX: IEL). IDP is the world’s largest provider of international education services. They assist international students who wish to study in English-speaking countries. As a sector leader, IDP organises several professional development events, such as the Australian International Education Conference and the popular CamTESOL English language teaching conference.

Morgans states, “IEL’s recovery (Australia Student Placement) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, market share gains, technology-led client retention, operating leverage, and acquisitions (especially IELTS distribution) can see IEL’s compound growth long term. Value has emerged. However, IEL’s near-term multiples see the stock susceptible to short-term volatility.”

The firm considers IDP as a company well-positioned for expansion. They forecast 38.2% compound annual growth (CAGR) in profits per share over the next two years. IDP Education’s stock has an add rating and a $31.10 price target from Morgans.

The next one on the list is Pro Medicus Limited (ASX: PME). Pro Medicus Limited is prominent imaging IT provider, providing services and solutions to hospitals, imaging centres, and healthcare organisations worldwide.

Morgans commend this company due to its stable growth trajectory. Their robust growth comes from their high-quality offerings and industry tailwinds. The company forecasts two-year earnings per share CAGR of 23.38%. Morgans has an add rating on the stock and a $58.18 price target.

They emphasise, “Pro Medicus is a leading healthcare end-to-end imaging software and service provider, servicing several of the world’s largest imaging centres and healthcare groups. We like the space, with high single-digit organic volume growth and long-term industry tailwinds. Long-term contracted revenues back up profitability in the business with some of the world’s largest hospital systems and a growing pipeline of tenders which we view will provide continued growth over the medium to long term.”

If you have spare space in your portfolio, Morgans Financial Limited wants you to investigate these ASX growth companies they consider in their October best ideas list.

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