Analysts rate these ASX growth shares as buys in May

These growth shares could be buys in May…

| More on:
Man drawing an upward line on a bar graph symbolising a rising share price.

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

Looking for growth shares to buy in May? Well, here's some good news! Listed below are two growth shares that have recently been named as buys with major upside potential.

Here's what you need to know about them:

Allkem Limited (ASX: AKE)

Allkem could be a growth share to buy in May. 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. This gives Allkem geographic diversity and also lithium type diversity.

Unlike the many explorers on the Australian share market that are some way off producing lithium, Allkem is already shipping it in large quantities. This is allowing the company to benefit from the sky high lithium prices being underpinned by the clean energy transition and the rapid adoption of electric vehicles.

Morgans is a big fan of Allkem and has an add rating and $16.98 price target on its shares. Based on the current Allkem share price, this implies potential upside of over 40%.

Xero Limited (ASX: XRO)

Another ASX growth share that has been tipped as a buy is Xero.

It is a leading cloud-based business and accounting software provider which had over 3 million subscribers globally at the last count.

As you may have noticed in 2022, tech shares are not performing very positively. And Xero is certainly no exception, with its shares down 38% since the start of the year.

While this is disappointing, it could be a buying opportunity for long term focused investors. In fact, Goldman Sachs believes Xero is a "compelling global growth story" and has recently reiterated its buy rating on its shares with a $133.00 price target.

Based on the current Xero share price, this implies potential upside of almost 48%.

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Growth Shares

3 exciting Australian growth shares to buy with $3,000 in August

Analysts think these shares could be top buys for Aussie growth investors.

Read more »

Young woman waiting for job interview.
Growth Shares

Australian job ad volumes declined last month. Are Seek shares a sell?

Should investors seek returns elsewhere?

Read more »

happy investor, share price rise, increase, up
Growth Shares

The best ASX growth shares to buy now

These growth shares have been recommended as buys.

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Growth Shares

Where to invest $2,500 in ASX shares in August

Let's see which shares are being tipped as buys for next month.

Read more »

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

What to buy now with the ASX at a record high

Analysts think these shares could still rise strongly from current levels.

Read more »

A young man looks at a stylised investment graph superimposed on an exterior office building backdrop.
Growth Shares

Where to invest $10,000 in ASX 200 stocks today

Analysts think these high-quality shares are in the buy zone for investors right now.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Growth Shares

Two ASX industrials shares with buy recommendations

One broker believes these growth shares are set to rise.

Read more »

Man smiling at a laptop because of a rising share price.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These stocks could deliver big returns.

Read more »