2 ASX shares with strong long term growth potential

Here are two shares with strong growth potential…

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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.”

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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.

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