It has been a difficult month for growth investors. But every cloud has a silver lining. That lining is that the shares of some quality companies have pulled back meaningfully, potentially making them attractive investment options today.
Three ASX growth shares that could be in the buy zone are listed below. Here's why they are rated as buys:
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Adore Beauty Group Limited (ASX: ABY)
The first growth share to look at is Australia's leading online beauty retailer, Adore Beauty. Although the company has been growing at a rapid rate since being founded in a Melbourne garage in 2020, it still has only a modest slice of the Australian beauty and personal care (BPC) market. This market is estimated to be worth $11.2 billion a year at present. This means Adore Beauty has a long runway for growth, which will be supported by the structural shift online and its growing customer base which is approaching 1 million.
UBS currently has a buy rating and $6.00 price target.
Goodman Group (ASX: GMG)
Another growth share to look at is Goodman Group. It is a leading integrated commercial and industrial property company which focuses on investing in and developing high quality industrial properties in strategic locations. These are global locations close to large urban populations, particularly around major gateway cities, where demand is strong and transformational changes are driving significant opportunities. This strategy is working wonders and has been driving strong and sustainable growth for years.
Citi believes Goodman is well-placed to continue its growth and is tipping it to outperform its earnings guidance in FY 2022. The broker has a buy rating and $27.50 price target on its shares.
Hipages Group Holdings Ltd (ASX: HPG)
Another ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with over 30,000 trusted tradies. It was a strong performer in FY 2021, delivering a 22% increase in revenue to $55.8 million. Pleasingly, it built on this with a 14% increase in first quarter revenue to $14.9 million despite lockdowns. Looking ahead, the company has an enormous market to grow into, which bodes well for the future.
Goldman Sachs is very bullish on its growth prospects and sees opportunities for Hipages to win a significant share of industry advertising spend. As a result, it currently has a buy rating and $5.15 price target on its shares.
