Are you looking to add a growth share or two to your portfolio? If you are, then the two listed below could be worth considering.
Here's why these growth shares are rated as buys:
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Temple & Webster Group Ltd (ASX: TPW)
The first ASX growth share to look at is Temple & Webster. It is Australia's leading pure-play online retailer of furniture and homewares.
Temple & Webster runs a drop-shipping model which sees thousands of different products sent directly to customers from suppliers. This is complemented by a growing private label range which is sourced directly by the company from overseas suppliers.
Goldman Sachs is a fan of the company and believes it is well-placed to be a big winner from the shift to online shopping. Something which is still in its infancy in Temple & Webster's target categories. It commented:
We believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment. In our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and greater focus on costs is a sensible strategy to balance near-term profitability with growth.
Goldman has a buy rating and $7.55 price target on the company's shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX growth share that is highly rated is Treasury Wine. It is of course one of the world's largest wine companies and the owner of the coveted Penfolds brand (among many others).
It has been tipped as a share to buy by analysts at Morgans. They believe that Treasury Wine's shares are trading at a very attractive level compared to peers. Particularly given its very positive growth outlook over the coming years. The broker commented:
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.
Morgans has an add rating and $13.93 price target on the company's shares.
