If you're searching for growth shares to buy, then two ASX shares listed below could be worth considering.
Both have been named as buys by analysts and tipped to have material upside potential. Here's what they are saying about them:
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Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share that has been named as a buy is Domino's.
It is one of the largest pizza chain operators in the world with a significant presence in the ANZ, European, and Asian regions.
And while the company is have a difficult time at present, analysts at Morgans believe investors should stick with the company. Particularly given its very positive long term outlook. It commented:
DMP is the largest Domino's franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP's growth is its ability to roll out new stores all over the world. […] Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.
Morgans has an add rating and $90.00 price target on Domino's shares.
Xero Limited (ASX: XRO)
Another ASX growth that could be in the buy zone is Xero. It is a cloud-based accounting platform provider to small and medium sized businesses globally.
Xero has been on form again this year despite the tough economic environment. For example, in FY 2022 the company reported a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion. This was underpinned by a 19% increase in total subscribers to 3.3 million thanks to growth in all markets.
Despite this, the Xero share price has been sold off along with the rest of the tech sector. Goldman Sachs sees this as a buying opportunity for investors. Earlier this year it said:
Following the recent underperformance (absolute/relative), we see an attractive entry point into what is a compelling global growth story and our preferred large cap technology name in ANZ.
Since then its shares have fallen even further, which is likely to have left Goldman's analysts licking their lips. Particularly given their believe that the company is "well-placed to navigate this uncertainty given the stickiness & importance of its software."
The broker has a buy rating and $111.00 price target on Xero's shares.
