If you're a fan of growth shares, then you may want to look at the two ASX shares listed below.
These growth shares have been rated as buys and tipped to climb materially higher from current levels. Here's what you need to know:
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Allkem Ltd (ASX: AKE)
If you don't mind investing in the resources sector, then the first ASX growth share to consider is Allkem. It was formed following the merger of two leading lithium miners – Galaxy Resources and Orocobre.
This merger made the company a top five global lithium miner with a collection of world class operations including Olaroz, Mt Cattlin, and the Sal de Vida brine project.
As Mt Cattlin and Olaroz are already operating, Allkem is currently benefiting greatly from the sky high lithium prices being underpinned by the decarbonisation trend and the rise of electric vehicles. These operations look likely to be added to in the near future as decisions are made on its other projects. This bodes well for its growth in the coming years, particularly given the outlook for lithium supply and demand.
Morgans is very bullish on Allkem and recently named it as its top pick in the lithium sector. The broker currently has an add rating and $13.25 price target on its shares. This implies potential upside of 40% for the Allkem share price from current levels.
Life360 Inc (ASX: 360)
Another ASX growth share to look at is Life360. It operates in the digital consumer subscription services market with a focus on products and services for digitally native families.
The team at Bell Potter is very positive on the company due to its freemium model and opportunity to convert its 30 million+ user base into paying subscribers.
The broker expects the latter to be boosted by its acquisitions of wearables company Jiobit and items tracking company Tile. Overall, Bell Potter believes the company is well placed to disrupt the safety and security market and achieve strong top line growth for many years.
Bell Potter has a buy rating and $13.51 price target. This is almost 80% higher than the current Life360 share price of $7.56.
