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If you have room for new additions to your portfolio, you may want to consider the two ASX growth stocks listed below. Both were recently named among the Morganov a list of the best ideas for October.
Here’s why its analysts are bullish on these ASX shares:
IDP Education Ltd (ASX: IEL)
The first share of ASX growth that Morgans values highly is education for IDPs. It is a student placement and language testing company that operates worldwide.
The broker believes that IDP has good growth opportunities and predicts a two-year earnings per share represents an annual growth rate of 38.2%. It commented:
The recovery of IEL (accommodation of students in Australia) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, increased market share, technology-enabled customer retention, operating leverage, and acquisitions (especially IELT distribution) can drive long-term IEL growth. Value has emerged, however short-term IEL multiples indicate that the stock is prone to short-term volatility.
Morgans has an add rating and a $31.10 target price on shares of IDP Education.
Pro Medicus Limited (ASX: PME)
Another ASX growth stock Morgan is bullish on is Pro Medicus. It’s the health imaging technology company behind the incredibly popular Visage 7 Enterprise Imaging platform.
Morgans likes the company because of its strong growth potential thanks to the quality of its offering and successful industry tailwinds. This is expected to contribute to annual earnings per share growth of 23.8%.
The broker commented:
Pro Medicus is a leading provider of comprehensive healthcare software and services serving a number of the world’s largest imaging centers and medical groups. We like the space with high single-digit organic volume growth and long-term industry threats. The profitability of the business is underpinned by long-term contract revenues with some of the world’s largest hospital systems and a growing number of tenders, which we believe will provide continued growth over the medium to long term.
Morgans has an add rating and a $58.18 target price on the company’s stock.