Analysts name 2 stellar ASX growth shares to buy

Here are two growth shares that could be buys…

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If you're searching for growth shares to buy, then it could be worth considering the two listed below.

Here's why analysts are saying that these ASX growth shares are in the buy zone now:

Readytech Holdings Ltd (ASX: RDY)

The first ASX growth share to look at is enterprise software provider Readytech.

Analysts at Goldman Sachs are very positive on Readytech. This is due to its strong position in defensive market verticals such as higher education and local government. It notes that these are under-served by both large and small enterprise software competitors.

Goldman expects this to allow the company to continue growing organically at a solid rate in the coming years. It also sees opportunities for Readytech to boost its growth with bolt on acquisitions.

The broker commented:

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company's earnings profile in an economic downturn.

Goldman Sachs has a buy rating and $4.60 price target on ReadyTech's shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that could be in the buy zone is wine giant Treasury Wine.

Analysts at Morgans are very positive on the company. This is due to its strong brands, attractive valuation, and highly regarded management team.

Morgans explained:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Its analysts currently have an add rating and $13.93 price target on the company's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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