Listed below are two ASX growth shares with major upside potential, according to analysts.
Here's what you need to know about these growth shares:
Image source: Getty Images
Adore Beauty Group Limited (ASX: ABY)
Adore Beauty is a leading online retailer in the Australian beauty and personal care (BPC) market. Earlier this month, the company released its half year results and revealed an 18% increase in revenue over the prior corresponding period to $113.1 million.
This was underpinned by a 13% increase in active customers to 876,000 and a 5% increase in annual revenue per active customer to $224. Even if you annualise its half year sales, it is still only a small slice of the $11.2 billion BPC market. This gives Adore Beauty a long runway for growth over the next decade as more and more beauty sales shift online.
In response to its result, the team at Shaw and Partners put a buy rating and $3.50 price target on its shares. This compares to the latest Adore Beauty share price of $2.12.
Allkem Limited (ASX: AKE)
Allkem is a top five global lithium mining company with a collection of high quality assets across several locations. These include Olaroz project in Argentina, Mt Cattlin in Western Australia, the Sal de Vida brine project in the lithium triangle, and the James Bay project in Canada.
It appears well-placed for growth in the coming years thanks to sky high lithium prices and its production growth opportunities.
The team at Bell Potter is very bullish on Allkem. The broker even named it the "go-to stock for multi-project exposure to lithium markets." Its analysts currently have a buy rating and $17.51 price target on the company's shares. This compares to the latest Allkem share price of $9.10.
