2 ASX shares with strong long term growth potential

Here are two shares with strong growth potential…

| More on:
share price rise

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're looking for growth shares to buy, 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:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. After starting life from a garage in Melbourne in 2010, Adore Beauty has evolved into 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 also has almost 1 million customers, who are underpinning strong sales growth. For example, after delivering a strong result in FY 2021, Adore Beauty followed this up with a 25% increase in first quarter revenue to $63.8 million.

But as large as this number is, it is still only a small portion of the Australian beauty and personal care (BPC) market which is estimated to be worth $11.2 billion and growing. This gives Adore Beauty a long runway for growth over the next decade, particularly as more and more sales shift online.

UBS is positive on Adore Beauty's outlook. As a result, the broker currently has a buy rating and $6.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX growth share that could be in the buy zone is ResMed. It is a sleep treatment-focused medical device company with a portfolio of industry-leading products supporting sufferers of afflictions including sleep apnoea and chronic obstructive pulmonary disease.

ResMed also has a growing software business that looks well-placed to benefit from the shift to home healthcare.

Like Adore Beauty, the company has a long runway for growth. This is due to its significant market opportunity, with an estimated ~1 billion people suffering from sleep apnoea worldwide.

Morgans is a fan of ResMed. It recently retained its add rating and put a price target of $40.80 on its shares. The broker believes ResMed is well-placed as it "builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain."

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. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and ResMed Inc. 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

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »