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:
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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.
