The Australian share market is home to a number of quality companies with solid growth prospects.
Two that have been tipped to grow strongly over the long term are listed below. Here's why analysts think investors should be buying their shares:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first growth share to look at is this pizza chain operator. It could be a top option due to its strong brand, investment in technology, and bold expansion plans. The latter sees the company aiming to more than double its network from 2,949 stores in FY 2021 to 6,650 stores by FY 2033.
It is worth noting that the above target relates only to the existing markets it operates in. Management also revealed that it is actively looking for acquisitions that could increase its store target even further.
All in all, this has many analysts predicting strong earnings growth in the future. One of those is Goldman Sachs, which is forecasting an operating earnings compound annual growth rate (CAGR) of 14.6% for the next three years.
In light of this, the broker has put a buy rating and $147.00 price target on the company's shares.
Life360 Inc (ASX: 360)
Another ASX growth share that could be in the buy zone is Life360. It is the technology company behind the popular Life360 mobile app for families.
And when I say popular, I mean popular! For example, during the third quarter of FY 2021, Life360 added a further 1.5 million monthly active users (MAU), bringing the total to 33.8 million. This underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million.
Looking ahead, management sees significant opportunities to monetise its massive user base through cross-selling and upselling. This will be supported by its recent acquisitions of items tracking company Tile and wearables company Jiobit.
The latter sees the company take control of the discreet wearable Jiobit Location Monitor. This provides location monitoring and smart notification services for younger children, pets, seniors, and any loved one prone to wander. Management expects the acquisition of Jiobit to allow Life360 to tap into two fast growing markets: the multi-billion pet supplies and services and elder care markets.
The team at Bell Potter is very positive on Life360. It currently has a buy rating and $15.25 price target on its shares.
