Morgan Stanley rates these 3 ASX growth shares as buys

These growth shares could be in the buy zone…

| More on:

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

Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below that have recently been named as buys by the team at Morgan Stanley.

Here's what you need to know about them:

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

Image source: Getty Images

Life360 Inc (ASX: 360)

The first ASX growth share that Morgan Stanley is positive on is Life360. It is the growing technology company responsible for the eponymous Life360 mobile app. This market leading app is for families and offers useful features such as communications, driver safety, and location sharing.

As of its last update, Life360 had grown its user base to a massive 32 million. This is generating significant recurring revenue and, most importantly, opens the door to material cross selling and upselling opportunities. Particularly given its recent acquisitions of wearables company Jiobit and items tracking company Tile.

Morgan Stanley is bullish the company's future. It currently has an overweight rating and $16.50 price target on its shares.

Symbio Holdings Limited (ASX: SYM)

Another ASX growth share that the broker is positive on is Symbio (previously known as MNF Group). Symbio develops and operates a global communications network and software suite that allows some of the world's leading tech innovators to deliver new-generation communications solutions.

This includes giants such as Google, Twilio, and Zoom. Symbio appears well-placed for growth over the long term thanks to favourable tailwinds and its expansion across Asia. It is also sitting on a sizeable cash balance following an asset divestment. This gives management opportunities to bolster its growth through M&A activities.

The broker currently has an overweight rating and $7.30 price target on Symbio's shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share the broker is bullish on is Temple & Webster. It is an online furniture and homewares retailer which has really caught the eye in recent years.

Thanks to its strong market position and the ongoing shift to online shopping, Temple & Webster has been growing its sales and operating earnings at a rapid rate. For example, in FY 2021 the company revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million.

The good news is that Temple & Webster still has a long runway for growth over the next decade as more and more category sales shift online.

Morgan Stanley has an overweight rating and $16.00 price target on Temple & Webster's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc., MNF Group Limited, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Three business people stand on platforms in the desert and look out through telescopes.
Growth Shares

2 top ASX shares to buy and hold for the next decade

I’m bullish about the prospects of these businesses…

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Growth Shares

3 fantastic ASX shares that could be much bigger by 2030

Wanting to invest for the long-term? Here are three shares to consider.

Read more »

Excited couple celebrating success while looking at smartphone.
Growth Shares

3 ASX growth shares I want to buy and hold forever

For a long-term investment, I want a business that can keep evolving.

Read more »

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

Why I'd buy and hold Pro Medicus and DroneShield shares

These are two shares where I am much more interested in what the businesses could become than what happens over…

Read more »

Woman with her kitten on a laptop in her home office.
Growth Shares

3 top ASX shares for beginners to buy now

I think starting with businesses you can actually understand makes the ups and downs of investing much easier to handle.

Read more »

Happy investor on tablet with finance graphs rising in overlay.
Growth Shares

2 ASX shares I want to hold until 2030 and beyond

Both businesses have already achieved plenty. The amount of growth still available is why I would want to own them…

Read more »

flying asx share price represented by man flying remote control drone
Growth Shares

Why are DroneShield shares suddenly rising again?

A guidance miss, then a sharp bounce. What changed?

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Growth Shares

Where I'd invest $25,000 into ASX shares in August

I outline why these shares could be top picks for investors this month and for years to come.

Read more »