Are you wanting to buy some ASX growth shares but aren't sure which ones to buy? Don't worry, because analysts have recently tipped the two listed below as buys.
Here's why these could be the growth shares to buy right now:
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Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share to buy could be Aristocrat Leisure. It is one of the world's leading gaming technology companies with operations covering poker machines, mobile games, and real money gaming.
Morgans is very positive on the company's long term growth potential. It commented:
We're optimistic about ALL's long-term growth potential, given its superior capitalisation and strong ability to invest in the development of its land-based and digital gaming businesses. Additionally, ALL has a high cash conversion rate and ROCE, despite running a capital-light model. Additionally, ALL has ample funding for investment in online RMG, even following the recent buyback extension.
It currently has an add rating and $43.00 price target on its shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that could be a buy is Temple & Webster. It is Australia's leading pureplay online furniture and homewares retailer. It also has a smaller online business that is trying to challenge Bunnings.
While time will tell whether its new business will succeed, Goldman Sachs doesn't appear to believe that needs to happen to make Temple & Webster shares a successful investment. This is due to its strong position in a retail category that is in the early stages of shifting online. It recently commented:
Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) 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 (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.
Goldman has a buy rating and $6.50 price target on its shares.
