If you're looking for ASX shares to buy and hold, then you may want to consider the two listed below.
Both have been named as buys and tipped for big things in the future. Here's what analysts are saying:
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Lovisa Holdings Limited (ASX: LOV)
The first ASX share to look at this fast-fashion jewellery retailer. Lovisa has been growing at a solid rate for a number of years and appears well-placed to continue this trend thanks to its global expansion.
The team at Morgans appear confident that this will be the case and are particularly bullish on Lovisa's future. Especially after the release of a "remarkable" first half result last month.
In respect to the future, the broker said: "LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious (and financially well-incentivised) new leadership in place, we think now is the time LOV steps up to become a global force. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the returns could be stellar."
Morgans has an add rating and $24.00 price target on its shares.
Xero Limited (ASX: XRO)
Another ASX share to consider buying is Xero. It is a leading cloud-based business and accounting software provider which boasts over 3 million subscribers globally.
Xero's shares have come under significant pressure this year after being caught up in the tech selloff. While this is disappointing, the team at Goldman Sachs sees this as a buying opportunity.
It commented: "The ASX All Tech index has largely fallen in line with increasing real yields, with sector valuation now below pre-COVID levels while fundamentals are arguably stronger given the pandemic accelerated cloud/ technology adoption."
In fact, Goldman is forecasting a 24% compound annual growth rate for Xero's gross profit between FY 2021 and FY 2025. It has also previously suggested that Xero has what it takes to deliver strong growth over multiple decades.
As a result, the broker is very positive on the future and recently retained its buy rating with a trimmed price target of $135.00.
