Why Zip (ASX:Z1P) and this ASX growth share are highly rated by analysts

Here are a couple of ASX shares that could be destined for strong growth in the future…

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Big green letters spell growth, indicating share price movements for ASX growth shares

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If you’re wanting to boost your portfolio with a couple of growth shares in June, then you may want to consider the ones listed below.

Here’s why these ASX growth shares have been rated as buys:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth to look at is Domino’s. It is the largest Domino’s franchisee outside of the United States.

The company currently holds the master franchise rights to the Domino’s brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, and Denmark. But it may not stop there. Management advised that it is looking at acquisition opportunities. This could include expanding into new geographic locations, increasing its potential market opportunity.

Not that it necessarily needs to. The company currently operates approximately ~2,800 stores in existing markets and sees opportunities to double its network over the next decade.

Combined with its same store sales growth targets, this would underpin strong top line growth for many years to come if executed successfully.

Bell Potter currently has a buy rating and $122.00 price target on the company’s shares.

Zip Co Ltd (ASX: Z1P)

Another ASX growth share to look at is Zip. This buy now pay later (BNPL) provider has been a very impressive performer over the last few years.

After breaking out of the shadow of its larger rival, it is now becoming a force of its own. This is particularly the case in the United States where its Quadpay business is growing its customer numbers and sales at a rapid rate. This is a big positive given how the US market is estimated to be worth upwards of $5 trillion.

In addition to this, Zip has just extended its total addressable market by expanding into mainland Europe and the Middle East via acquisitions. If these acquisitions are successful, then the company’s growth could be given a huge boost over the 2020s.

Morgans is a fan of Zip. Its analysts currently have an add rating and $10.39 price target on its shares.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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