Why I would buy A2 Milk and 2 other exciting growth shares

James Mickleboro | February 8, 2019 | More on: A2M DMP RMD

Due to having a high tolerance for risk, I’m a big fan of investing in growth shares.

Luckily for me there are a large number of companies listed on the Australian share market that have strong long-term growth prospects.

Three which I think are among the best on the local market right now are listed below. Here’s why I like them:

A2 Milk Company Ltd (ASX: A2M)

One of my favourite growth shares on the local market is A2 Milk Company. The leading dairy and infant formula company has been an impressive performer over the last three years thanks to the strong sales growth of its a2 Platinum infant formula. The main catalyst for this has been demand in China and from daigou shoppers in Australia. The good news is that this demand doesn’t appear to be waning and a2 Milk Company’s market share has continued to grow at a solid rate. With its shares changing hands at 38x estimated forward earnings, I feel they are fairly priced for its current growth profile. Though it is worth remembering that if its growth falls short of expectations, its shares could come under pressure.