Analysts are tipping these ASX growth shares as top buys

Why are they bullish on these names? Let's find out.

| More on:
Two smiling work colleagues discuss an investment or business plan at their office.

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 are spoilt for choice on the Australian share market.

That's because there are a good number of quality ASX growth shares that analysts are tipping to roar higher from where they currently trade.

With that in mind, let's take a look at two stocks that analysts rate as buys. Here's what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX growth share that could be a top option for growth investors to consider buying is Life360.

It is a technology company operating in the digital consumer subscription services market, with a focus on products and services for digitally native families. Its key product is the hugely popular Life360 app, which currently has 70.6 million active users. It offers families features such as communications, driver safety, and location sharing.

Life360 also recently launched an advertising business which aims to monetise its massive audience. Particularly in markets where it may be difficult to sell its premium subscriptions.

Bell Potter has been very impressed with the company's performance in FY 2024. And with its new advertising business expected to boost revenues further, it believes its growth outlook is very bright. The broker recently said:

[W]e maintain our BUY recommendation. Potential catalysts include the Q3 result in November – typically the strongest quarter for paying circle growth – and a step up in advertising revenue in both Q3 and Q4. Increased clarity around the new Placer.ai deal could also be a positive as well as early success for Hubble.

[…] Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base.

Its analysts currently have a buy rating and $20.50 price target on its shares. Based on the current Life360 share price of $18.60, this implies potential upside of 10% for investors over the next 12 months.

Tyro Payments Ltd (ASX: TYR)

Morgans thinks that Tyro could be an ASX growth share to buy right now.

It is a payments company powering more than 71,000 merchants across Australia with instore, online, and on-the-go payment solutions.

The broker was impressed with the company's margin improvements in FY 2024, especially given the tough operating environment. In light of this, it has boosted its earnings estimates materially for the coming years. It said:

While it remains a more difficult top line environment for TYR, this result demonstrated improved profitability through the benefits of TYR's pricing transformation program, and efficiency improvements. We increase our TYR FY25F/FY26F EPS by +15%-25% on improved EBITDA margin assumptions and lower D&A forecasts We maintain our ADD rating.

Morgans has an add rating and $1.63 price target on its shares. This implies potential upside of 58% for investors from current levels.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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 bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 exciting ASX 200 growth shares to buy in July

Brokers think these shares could be top picks for growth investors.

Read more »

A woman sits on sofa pondering a question.
Growth Shares

Is this the best ASX 200 share to buy for growth?

This stock is exposed to multiple growth tailwinds.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Growth Shares

Where to invest $50,000 in ASX shares

Analysts think these shares could be great destinations for your hard-earned money.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Growth Shares

3 ASX 200 growth shares with room to run in FY26

Let's see why analysts think these shares are top picks for growth investors in the new financial year.

Read more »

Group of children dressed in green hold up a globe relating to climate change.
Growth Shares

3 ASX 200 shares quietly riding major global trends

Analysts think these buy-rated shares are destined to have bright futures.

Read more »

Three excited business people cheer around a laptop in the office
Growth Shares

These amazing ASX shares could be compounding machines

Let's see why these quality shares could be key to generating big returns over the next decade.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Growth Shares

Where to invest $5,000 in ASX shares for growth

These shares could be top picks for investors looking for growth opportunities.

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These compelling investments have a great outlook.

Read more »