If you're looking for growth shares, then look no further. Listed below are two ASX growth shares which have been tipped for strong growth in the future.
Here's why analysts have rated them as buys:
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Adore Beauty Group Limited (ASX: ABY)
The first ASX growth share to look at is Adore Beauty. It is an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.
It grew at a very strong rate in FY 2021 and has followed this up with more of the same in FY 2022. Adore Beauty recently released its first quarter update and revealed revenue of $63.8 million, up 25% on the prior corresponding period.
The good news is that even when you annualise this, it is still only a fraction of the Australian beauty and personal care (BPC) market which is currently estimated to be worth $11.2 billion and growing. This gives Adore Beauty a long runway for growth over the next decade.
The team at UBS is positive on Adore Beauty. The broker currently has a buy rating and $6.00 price target on its shares.
NEXTDC Ltd (ASX: NXT)
Another ASX growth share for investors to consider is NEXTDC.
It owns a collection of world class Tier III and Tier IV data centre facilities in key locations across Australia. From these centres, NEXTDC provides scalable, on-demand services to support outsourced data centre infrastructure and cloud connectivity for enterprises of all sizes.
NEXTDC has been growing at a strong rate for many years and appears well-placed to continue this positive trend long into the future. This is thanks to the ongoing structural shift to the cloud which is underpinning growing demand for capacity in its centres.
The team at Goldman Sachs is very positive on the company's outlook. So much so, it believes NEXTDC will grow its operating earnings by ~20% per annum through to at least FY 2024.
The broker has a buy rating and $14.40 price target on the company's shares
