Morgan Stanley rates these 3 ASX growth shares as buys

These growth shares could be in the buy zone…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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 that have recently been named as buys by the team at Morgan Stanley.

Here's what you need to know about them:

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

Image source: Getty Images

Life360 Inc (ASX: 360)

The first ASX growth share that Morgan Stanley is positive on is Life360. It is the growing technology company responsible for the eponymous Life360 mobile app. This market leading app is for families and offers useful features such as communications, driver safety, and location sharing.

As of its last update, Life360 had grown its user base to a massive 32 million. This is generating significant recurring revenue and, most importantly, opens the door to material cross selling and upselling opportunities. Particularly given its recent acquisitions of wearables company Jiobit and items tracking company Tile.

Morgan Stanley is bullish the company's future. It currently has an overweight rating and $16.50 price target on its shares.

Symbio Holdings Limited (ASX: SYM)

Another ASX growth share that the broker is positive on is Symbio (previously known as MNF Group). Symbio develops and operates a global communications network and software suite that allows some of the world's leading tech innovators to deliver new-generation communications solutions.

This includes giants such as Google, Twilio, and Zoom. Symbio appears well-placed for growth over the long term thanks to favourable tailwinds and its expansion across Asia. It is also sitting on a sizeable cash balance following an asset divestment. This gives management opportunities to bolster its growth through M&A activities.

The broker currently has an overweight rating and $7.30 price target on Symbio's shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share the broker is bullish on is Temple & Webster. It is an online furniture and homewares retailer which has really caught the eye in recent years.

Thanks to its strong market position and the ongoing shift to online shopping, Temple & Webster has been growing its sales and operating earnings at a rapid rate. For example, in FY 2021 the company revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million.

The good news is that Temple & Webster still has a long runway for growth over the next decade as more and more category sales shift online.

Morgan Stanley has an overweight rating and $16.00 price target on Temple & Webster's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc., MNF Group Limited, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A group of people in suits watch as a man puts his hand up to take the opportunity.
Growth Shares

A rare buying opportunity to buy 1 of Australia's top shares?

This stock has a lot to offer for investors wanting to beat the market…

Read more »

Red buy button on an Apple keyboard with a finger on it.
Growth Shares

2 little-known ASX shares that could make big returns

Experts are bullish about the potential of these stocks.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Growth Shares

2 high-quality ASX stocks to buy and hold long term

Brokers see the dip as a compelling long-term buy with 33% to 44% upside.

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
Growth Shares

3 fantastic ASX shares that could help build long-term wealth

Analysts think these shares are in the buy zone right now.

Read more »

A fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Growth Shares

2 ASX 200 shares I rate as top buys for growth

These sizeable businesses could scale significantly from here…

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

Where to invest $7,000 in ASX shares during April

I’m optimistic that these ASX shares could beat the stock market.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Growth Shares

3 ASX 200 shares that could quietly compound for years

Let's see what sets these shares apart from the crowd.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Growth Shares

3 ASX shares tipped to grow 100% or more in the next 12 months

Here’s how much these exciting stocks could rise in the year ahead.

Read more »