Analysts name 2 exciting ASX growth shares to buy in 2022

These growth shares are highly rated for a reason…

| More on:
A businessman leaps in the air outside a city building in the CBD.

Image source: Getty Images

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

The Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here's why analysts think investors should be buying their shares:

Domino's Pizza Enterprises Ltd (ASX: DMP)

The first growth share to look at is this pizza chain operator. It could be a top option due to its strong brand, investment in technology, and bold expansion plans. The latter sees the company aiming to more than double its network from 2,949 stores in FY 2021 to 6,650 stores by FY 2033.

It is worth noting that the above target relates only to the existing markets it operates in. Management also revealed that it is actively looking for acquisitions that could increase its store target even further.

All in all, this has many analysts predicting strong earnings growth in the future. One of those is Goldman Sachs, which is forecasting an operating earnings compound annual growth rate (CAGR) of 14.6% for the next three years.

In light of this, the broker has put a buy rating and $147.00 price target on the company's shares.

Life360 Inc (ASX: 360)

Another ASX growth share that could be in the buy zone is Life360. It is the technology company behind the popular Life360 mobile app for families.

And when I say popular, I mean popular! For example, during the third quarter of FY 2021, Life360 added a further 1.5 million monthly active users (MAU), bringing the total to 33.8 million. This underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million.

Looking ahead, management sees significant opportunities to monetise its massive user base through cross-selling and upselling. This will be supported by its recent acquisitions of items tracking company Tile and wearables company Jiobit.

The latter sees the company take control of the discreet wearable Jiobit Location Monitor. This provides location monitoring and smart notification services for younger children, pets, seniors, and any loved one prone to wander. Management expects the acquisition of Jiobit to allow Life360 to tap into two fast growing markets: the multi-billion pet supplies and services and elder care markets.

The team at Bell Potter is very positive on Life360. It currently has a buy rating and $15.25 price target on its shares.

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. 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

$100 Australian notes on top of each other.
Growth Shares

Where to invest $10,000 into ASX shares in July

Analysts are raving about these shares. But why are they buys?

Read more »

Four piles of coins, each getting higher, with trees on them.
Growth Shares

2 ASX growth shares to buy this month: experts

These stocks are expected to have a strong next few years…

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Growth Shares

3 ASX growth shares to buy before the next bull market

These shares could fare well in the next bull market. Here's what analysts are tipping as buys.

Read more »

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 no-brainer ASX shares to buy with $200 right now

You don't need a brain to see that these shares could be top picks right now.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX growth stocks worth buying with $7,000 in your portfolio today

These stocks are all historic market beaters.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 ASX 200 shares with huge growth potential in the next decade

Analysts think these growth shares could be in the buy zone in July.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Growth Shares

Where I'd invest $5,000 into ASX 300 growth shares

These stocks have excellent growth potential.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »