If you have room for some new portfolio additions this week, then it could be worth considering the two ASX 200 growth shares listed below.
Here's what you need to know about these buy-rated shares:
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Lovisa Holdings Limited (ASX: LOV)
The first ASX 200 growth share to look at is fast-fashion jewellery retailer Lovisa.
It could be a top long term option due to its strong brand, highly experienced management team, and bold global expansion plans.
Morgans is very bullish on the company. This is due to its massive store expansion potential. It recently commented:
What was even more remarkable than the result itself was the phenomenal scale of LOV's ambition. In its own words, LOV is 'building a global brand', which will involve the development of a global presence that we believe will far out scale the 651 stores in the portfolio today.
The momentum of growth is expected to increase in FY23 and the addition of further new markets, perhaps including Italy and Mexico, appears more than likely. In our opinion, it won't stop there. Expansion in Hong Kong seems to us to be a precursor to a move into mainland China in due course. And if LOV can prove itself in Italy, the European fashion capital, why not Japan, its counterpart in Asia, further down the track?
Morgans has an add rating and $24.00 price target on its shares. This compares to the latest Lovisa share price of $21.93.
Xero Limited (ASX: XRO)
Another ASX 200 growth share to look at is Xero. It is a fast-growing cloud-based accounting solution provider to small and medium sized businesses.
Xero's rapid growth in recent years has been driven by the shift to the cloud, its global expansion, and a series of bolt-on acquisitions. Pleasingly, the company still has a very long runway for growth. At the last count, Xero had amassed 3.3 million subscribers. This compares to its total addressable market of 45 million subscribers.
Goldman Sachs is a big fan of the company and believes it is well-placed for long term growth. It previously commented:
Key pillars of our buy thesis are: (1) Xero has a long runway for cloud accounting growth (in existing and new markets); (2) can drive earnings through monetisation of its ecosystem; (3) has highly attractive unit economics; and (4) substantial barriers to entry at scale.
As a result, the broker has a buy rating and $111.00 price target on Xero's shares. This compares to the current Xero share price of $78.95.
