Looking for growth shares to buy? Two that could be worth considering are listed below.
Both look well-placed for growth during the 2020s. Here's what you need to know about these ASX growth shares:
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Allkem Limited (ASX: AKE)
The first ASX growth share to consider is Allkem. It is the top five global lithium mining company that was created with the merger of Galaxy Resources and Orocobre. The company owns a collection of high-quality assets including Olaroz, Mt Cattlin, and the Sal de Vida brine project.
With lithium prices at sky high levels, demand outstripping supply, and plenty of production growth opportunities, Allkem looks well placed to generate strong sales growth in FY 2022 and beyond.
Bell Potter is very positive on Allkem and believes it is the "go-to stock for multi-project exposure to lithium markets." Last week it upgraded the company's shares to a buy rating with an improved price target of $17.51. This is almost double the current Allkem share price of $8.78.
The broker explained: "The higher lithium price outlook has resulted in large upgrades to our AKE earnings outlook and valuation. EPS changes in this report are: FY22 +12%; FY23 +76%; and FY24 +131%. Our target price is now $17.51/sh (previously $11.00/sh). We have upgraded our recommendation to Buy."
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another 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 to 6,650 stores in existing markets over the next 10 years.
Domino's also has a strong balance sheet and the flexibility to make acquisitions that could increase its store target even further.
Combined with its long track record of same store sales growth, this bodes well for its sales and profit growth over the next decade. In the meantime, the team at Goldman Sachs is forecasting an operating earnings compound annual growth rate (CAGR) of 14.6% for the next three years.
In light of this strong growth, its analysts have a buy rating and $136.20 price target on the company's shares. This compares to the latest Domino's share price of $100.18.
