Growth shares have fallen out of favour with investors this year. While this is disappointing, it could have created a buying opportunity for long term focused investors.
With that in mind, listed below are two ASX growth shares that are trading well below their recent highs and have been rated as buys. Here's what you need to know about them:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is a leading global gaming content and technology company and top-tier mobile games publisher. It offers a diverse range of products and services including electronic gaming machines, casino management systems, and free-to-play mobile games.
It has been growing at a strong rate over the last decade and looks well-placed to continue this positive trend in the coming years thanks to its strong market position and the growing popularity of its games.
Morgans is a fan of the company. It has an add rating and $52.00 price target on its shares. This compares to the latest Aristocrat share price of $35.40.
Its analysts recently commented: "There are strong product tailwinds for ALL and it is clearly excelling in the land based arena with game content outperforming peers."
Nitro Software Ltd (ASX: NTO)
Nitro is a global document productivity software as a service (SaaS) company accelerating digital transformation. As a global player in the eSign and workflow productivity market, Nitro allows organisations to drive better business outcomes through 100% digital document processes and fast, efficient workflows.
The company has over 3 million licensed users and 13,000+ business customers across 157 countries. This includes over 67% of the Fortune 500 and three of the Fortune 10.
Goldman Sachs is very positive on Nitro and has a buy rating and $2.60 price target on its shares. This compares to the latest Nitro share price of $1.19.
The broker notes that it has a huge total addressable market to grow into in the future. It commented: "Nitro Software is a global enterprise software challenger in a US$34bn TAM across PDF, e-signing and workflows. Nitro operates in large, underpenetrated markets supported by structural growth tailwinds including remote work, enterprise digitisation and e-signing adoption."
