If you have room in your portfolio for some ASX 200 growth shares, then it could be worth considering the two listed below.
Both have been named as buys by brokers and are tipped to rise very strongly from current levels. Here's what you need to know about them:
Lovisa Holdings Ltd (ASX: LOV)
Over at Morgans, its analysts think that Lovisa could be an ASX 200 growth share to buy right now.
The broker believes the rapidly growing fashion jewellery retailer is well-positioned to continue its strong form long into the future thanks to its large global expansion opportunity. It said:
LOV grew substantially in FY23 to finish the year with an 801-store network in 39 countries. We believe it plans to enter mainland China in FY24, paving the way for significant longer-term growth.
We have increased our finance cost estimates in FY24 and FY25, leading to 7% and 3% lower forecast NPAT. We have increased our long-run earnings estimates.
The broker has an add rating and $27.50 price target on its shares. This suggests a potential return of 25% (28%, including dividends) for investors.
Megaport Ltd (ASX: MP1)
Analysts at Goldman Sachs think that this leading global provider of elastic interconnection services would be a top ASX 200 growth share to buy right now.
The broker believes the company is well-positioned for long term growth thanks to structural tailwinds. It explains:
We believe MP1 will benefit from strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies.
While acknowledging mixed near-term execution around the partner channel and the new MVE product, we are Buy rated on the name as we remain confident MP1 has a clear product advantage vs. peers and a decade-long runway for robust growth.
Despite the soft operational trends in recent periods, we expect still robust top-line growth, with the increased focus on profitable growth supporting an attractive earnings profile over FY24-26.
Goldman has a buy rating and $11.90 price target on its shares. This implies potential upside of 30% for investors over the next 12 months.
