Are you looking for some ASX growth shares for your investment portfolio? If you are, then it could be worth checking out the stocks named below.
That's because they have been named as buys and tipped to rise 15% and 30% from current levels. Here's why these growth shares could be top picks:
Image source: Getty Images
NextDC Ltd (ASX: NXT)
Analysts at Macquarie think that NextDC could be an ASX growth share to buy. It is one of the region's leading colocation service providers from its growing collection of world-class data centres.
The broker believes that NextDC is well-placed for growth due to the increasing demand for data centre capacity underpinned by artificial intelligence and the shift to the cloud. This includes from a new breed of hyperscale customers (GPU Cloud and ChatGPT-type providers) entering the market.
In light of this, Macquarie recently put an outperform rating and $21.10 price target on NextDC's shares. Based on where its shares are currently trading, this suggests that upside of 17% is possible over the next 12 months.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that could be a buy according to analysts is Australia's leading pureplay online furniture and homewares retailer, Temple & Webster.
It is also benefiting from a structural shift. This time around it is the structural shift to online shopping, which has been underpinning rapid revenue growth from the company in recent years. And with this shift still only in its early days, Temple & Webster appears well-positioned to continue its growth long into the future.
The team at Morgan Stanley believes this is the case. The broker has become even more confident that Temple & Webster can deliver on its long-term $1 billion revenue target and EBITDA margins of over 15%. This compares to $498 million and 2.6%, respectively, in FY 2024.
In response to its recent full year results, the broker put an overweight rating and $13.15 price target on its shares. Based on its current share price, this implies potential upside of 15% for investors.
Webjet Limited (ASX: WEB)
A third ASX growth share for investors to look at is Webjet. It is an online travel booker and bedbank services provider.
UBS is feeling bullish about the company's outlook. Particularly given its proposed demerger of its B2B from B2C operations. The broker suspects that this demerger could underpin a re-rating of Webjet's shares.
UBS currently has a buy rating and $10.60 price target on its shares. This suggests that they could rise 30% from current levels.
