Are you searching for some additions to your portfolio? If you are, listed below are two ASX growth shares that have been given buy ratings by brokers.
Here's why its analysts rate them highly:
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Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure could be an ASX growth shares to buy according to analysts at Morgans.
The broker likes the leading gaming technology company due to its long-term growth potential. This is being underpinned by the popularity of its poker machines and digital games, as well as its recent expansion into real money gaming (RMG). Morgans explains:
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.
Morgans currently has an add rating and $45.00 price target on its shares.
Objective Corporation Limited (ASX: OCL)
Goldman Sachs thinks that Objective Corp could be an ASX growth share to buy.
Its analysts rate the public sector software provider highly due to its strong position in a relatively defensive sector. Goldman believes that robust demand and its defensive earnings will ultimately underpin earnings per share growth above 20% in both FY 2024 and FY 2025. The broker explains:
In our view OCL is well placed to deliver robust and defensive earnings growth driven by (1) R&D and new product cycles accelerating the contribution from newer products including Nexus, Build and RegWorks; (2) cycling of revenue/earnings headwinds from model transition away from perpetual / services revenue and towards subscriptions; and (3) cost management into FY24, with +350/+250bps margin expansion driving +23%/+32% FY24/25 EPS growth when comping trough FY23E earnings.
Goldman has a buy rating and $14.90 price target on Objective Corp's shares.
