Analysts name 2 excellent ASX growth shares to buy and hold

These growth shares could be top long term options…

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Are you interested in making some long term investments in ASX growth shares? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about these ASX growth shares:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 270 brands and 11,700 products.

Adore Beauty has been growing at a strong rate over the last decade and continued during the first half of FY 2022. The company reported a 18% increase in revenue to $113.1 million and a 13% lift in active customers to 876,000. It also reported a 5% improvement in annual revenue per active customer to $224, which equates to an annual run rate of $196.2 million.

This is still only a very small slice of the Australian beauty and personal care (BPC) market, which is currently estimated to be worth $11.2 billion. So, as more sales shift online, Adore Beauty appears well-placed for growth in this niche but lucrative market.

The team at Shaw and Partners is very positive on Adore Beauty’s future. The broker currently has a buy rating and $3.50 price target on its shares.

Webjet Limited (ASX: WEB)

Another growth share for investors to look at is online travel agent, Webjet.

For obvious reasons, it has been hit incredibly hard by the pandemic. But it is worth remembering that so were its competitors, with many not faring anywhere near as well as Webjet.

Goldman Sachs is very positive on the company’s future. It believes Webjet will come out stronger on the other side of the pandemic with growth potential both in the B2B and B2C spaces. And while the pandemic isn’t over just yet, Goldman highlights that Webjet has the balance sheet capacity to ride out the storm until late 2023 on zero activity.

Not that it expects this to be necessary. Goldman is forecasting a return to profit in FY 2023, with dividends even recommencing with its final dividend of that financial year.

In light of this, the broker believes investors should be buying its shares now with a long term view. Goldman currently has a buy rating and $6.90 price target on Webjet’s shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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