Are you wanting to add a growth share or two to your portfolio?
If you are, then analysts at Goldman Sachs think the two listed below could be worth considering. Here's why these growth shares are rated as buys:
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Aristocrat Leisure Limited (ASX: ALL)
Aristocrat could be an ASX growth share to buy according to the broker. It is a gaming technology company best-known for its industry-leading poker machines. But it also has a lucrative digital business, named Pixel United, and recently expanded into the merging real money gaming market with a deal with BetMGM.
In addition, management invests heavily in research and development each year to cement its leadership position and position it for growth.
Goldman Sachs is confident in the company's outlook and has put a buy rating and $42.80 price target on its shares. It commented:
We view ALL as strategically the most diversified, holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now launching into the growing iGaming market. While short-term headwinds persist in the form of supply chain, spend for longer term growth etc., we believe that the longer-term growth outlook remains strong.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that Goldman Sachs is bullish on is Temple & Webster. It is Australia's leading pure-play online retailer of furniture and homewares.
Goldman currently has a buy rating and $6.50 price target on the company's shares.
The broker believes the company is well-placed to be a big winner from the shift to online shopping. Especially given that the shift is still in its infancy for 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.
