Analysts say these 3 ASX growth shares are top buys in October

Brokers are saying good things about these stocks. Let's see why they are bullish.

| More on:
a happy investor with a wide smile points to a graph that shows an upward trending share price

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

If you have space in your portfolio for some new ASX growth shares in October, then it could be worth checking out the three listed below.

They have all recently been named as buys by brokers. Here's what you need to know about these top growth shares:

Life360 Inc (ASX: 360)

Analysts at Goldman Sachs continue to see Life360 as an ASX growth share to buy.

It is the location technology company behind the hugely popular Life360 app. At the last count, there were approximately 70 million monthly active users (MAU) across more than 150 countries using this app to keep their family safe.

Goldman Sachs believes the company is well-placed to grow ahead of the market's expectations in the coming years. It notes that "Life360's ability to manage costs while driving strong revenue growth has surprised to the upside since pivoting to profitable growth in early 2023, and we sit well ahead of Visible Alpha Consensus Data EBITDA expectations (7-10%) across FY24-26E."

Earlier this week, Goldman put a buy rating and $21.85 price target on Life360's shares.

Light & Wonder Inc. (ASX: LNW)

Over at Bell Potter, its analysts believe that this leading global cross platform games company could be an ASX growth share to buy this month.

The broker believes that a sharp pullback has created a buying opportunity for investors. Its analysts note that "whilst the loss of future Dragon Train revenues is disappointing, our Buy thesis remains predicated on LNW's cross-platform strategy and leading scale producing a portfolio of high-performing games in both land-based and digital markets. As a result, we expect improvement in product quality to strengthen LNW's competitive advantage, supporting higher ROIC."

Bell Potter currently has a buy rating and $161.00 price target on the company's shares.

Megaport Ltd (ASX: MP1)

A third ASX growth share that has been given the thumbs up by brokers is Megaport.

It is a leading global provider of elastic interconnection services, which has been growing at a rapid rate in recent years thanks to the cloud computing and artificial intelligence boom.

Goldman Sachs is also very positive on Megaport. It notes that the company is "benefiting from increasingly complex cloud environment and connectivity demands, while its product-led growth remains robust, supporting its positive net revenue retention and revenue tailwinds over the medium term."

It is for this reason that the broker recently put a buy rating and $12.00 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Light & Wonder, and Megaport. The Motley Fool Australia has recommended Light & Wonder. 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

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Growth Shares

These ASX growth shares could rise 18% to 30%

Let's see which shares are being tipped to rocket.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Growth Shares

Goldman Sachs tips this ASX 200 growth stock to rise 35%

Let's see what the broker is saying about this growing company.

Read more »

Two players on a field pump their fists in the air, indicating two of the best
Growth Shares

The ultimate ASX growth shares to buy with $5,000

Brokers are very bullish on these names. But why? Let's find out.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Growth Shares

Where to invest $1,000 into ASX shares in June

These shares could be buys according to analysts.

Read more »

Young female investor smiling and speaking on mobile phone while sitting in front of laptop
Growth Shares

Looking for ASX growth shares? I rate these 2 as top buys for June

I’m very excited about the growth potential of these stocks…

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 high-conviction ASX growth shares to buy

Analysts have good things to say about these stocks.

Read more »

happy investor, share price rise, increase, up
Growth Shares

Where to invest $5,000 into ASX growth shares now

These shares could be destined for big things according to analysts.

Read more »

ETF spelt out with a piggybank.
ETFs

Want to buy ASX growth shares? Consider these ETFs instead

Growth ETFs can be easier to invest in than shares.

Read more »