Supercharge your portfolio with these 3 ASX growth shares: brokers

Don't miss out on these ASX shares if you're a growth investor.

| More on:
a man with a wide, eager smile on his face holds up three fingers.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Growth investors certainly are spoilt for choice on the Australian share market. But which ASX growth shares should you buy over others?

Three that are highly rated right now are named below. Here's why analysts are tipping them as buys:

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.

Morgans is very positive on the company and has an add rating and $43.00 price target on its shares. It believes the company's is well-placed for long term growth potential. The broker 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.

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.

Goldman is very bullish on the company and has a buy rating and $6.50 price target on its shares.

It believes Temple & Webster is well-positioned for long-term growth thanks to its strong position in a category that is still in the early stages of shifting online. It 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.

Xero Limited (ASX: XRO)

Analysts at Citi are bullish on this cloud accounting platform provider and believe it could be an ASX growth share to buy. The broker has a buy rating and $105.70 price target on its shares.

Citi was pleased with the company's decision to cut costs and is now forecasting very strong earnings growth in the coming years. It commented:

Xero's decision to reduce ~15% of its headcount is unsurprising given: i) revenue/EBITDA per headcount has been limited (~1%) over the last two years; and ii) when considering that growth is expected to slow next year due to delays to MTD as well as softer macro conditions. We maintain our Buy rating as we expect Xero to deliver 3-year EBITDA CAGR >35% which reflects revenue growth of ~19%

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Growth Shares

2 ASX 300 growth shares with 'strong momentum' this fund manager says are buys

These two stocks have plenty of growth potential, according to experts.

Read more »

Rocket going up above mountains, symbolising a record high.
Growth Shares

2 high-growth ASX shares to buy now

Analysts at Bell Potter think these shares would be great picks for growth investors.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These ASX 200 growth stocks could rise 30% to 100%

Analysts think these shares are dirt cheap at current levels and have put buy ratings on them.

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
Growth Shares

Goldman Sachs loves these ASX 200 growth shares: Do you own them?

Why is the broker bullish on them? Let's find out.

Read more »

Happy work colleagues give each other a fist pump.
Growth Shares

2 super ASX growth shares to buy for huge returns

Analysts are feeling bullish about these shares. Let's see what they are saying about them.

Read more »

A fresh-faced young woman holds an Australian flag aloft above her head as she smiles widely on a beach as though celebrating a national day or event where Australia has been successful.
Growth Shares

The best Australian shares to buy with $1,000 right now 

Analysts think these shares could be great options for Aussie investors when the market reopens.

Read more »

A young man goes over his finances and investment portfolio at home.
Growth Shares

Why earning 4% to 5% in a term deposit 'isn't that attractive'

The upside is capped on the most risk-less investments.

Read more »

A woman makes the task of vacuuming fun, leaping while she pretends it is an air guitar.
Growth Shares

Overinvested in WiseTech shares? Here are two alternative ASX growth stocks

WiseTech shares are great, but there are other exciting growth stocks out there.

Read more »