Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.
Two that have been named as buys and tipped for strong growth are named below. Here's why analysts are bullish on them:
Image source: Getty Images
Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share for investors to look at is Aristocrat. It is a gaming technology company with a portfolio of world class poker machines and digital games.
It has been growing at a solid rate for well over a decade and has been tipped to continue this trend by the team at Citi. After smashing its forecasts during the first half, Citi is now forecasting a 35% increase in net profit in FY 2022 to $1,168 million.
Looking further ahead, the broker believes that Aristocrat "represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets."
In light of this, Citi has put a buy rating and $41.00 price target on the company's shares. Based on the current Aristocrat share price of $33.01, this implies potential upside of 24% for investors.
NextDC Ltd (ASX: NXT)
Another ASX growth share that is rated highly by analysts is NextDC. It is a leading data centre operator which has been benefiting greatly from the structural shift to the cloud.
Pleasingly, this shift still has a long way to go. As a result, NextDC's world class network of centres across key locations throughout Australia look well-placed to capture increasing demand.
But management isn't settling for that. It has its eyes on edge centres (regional data centres) and the Asia market. The latter has seen the company open up offices in Singapore and Tokyo.
Goldman Sachs is a fan of NextDC and has a conviction buy rating and $14.20 price target on its shares. Based on the current NextDC share price of $9.78, this implies potential upside of 45%.
