If you're interested in adding some growth shares to your portfolio in the near future, then the two listed below could be worth considering.
These ASX growth shares have been named as buys and tipped to generate strong returns for investors. Here's what you need to know about them:
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NextDC Ltd (ASX: NXT)
The first ASX growth share to look at is NextDC. It is a data centre operator with a collection of world class centres across key locations throughout Australia.
But NextDC isn't settling for that. It is also aiming to grow its data centre network with edge centres in regional areas and by expanding into the Singapore and Tokyo markets. Overall, this is positioning the company to capture the increasing demand for data centre capacity thanks to the ongoing structural shift to the cloud.
Citi is a fan of the company. It has a buy rating and $14.55 price target on NextDC's shares. Based on the latest NextDC share price of $11.17, this implies potential upside of 30% for investors.
TechnologyOne Ltd (ASX: TNE)
Another ASX growth share to look at is enterprise software provider TechnologyOne.
It is in the process of transitioning from a traditional software company into a software-as-a-service (SaaS) focused business. Pleasingly, this transition is going very well and is positioning TechnologyOne to deliver strong recurring revenue growth over the coming years.
In fact, management believes it is on track to achieve its annual recurring revenue (ARR) target of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.
Bell Potter is very positive on the company and has been pleased with the transition. The broker has a buy rating and $14.00 price target on its shares at present. Based on the latest TechnologyOne share price of $10.92, this suggests that there is potential upside of over 28% for investors over the next 12 months.
