3 ASX shares analysts believe have enormous growth potential

Here are three ASX shares with enormous potential…

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The Australian share market is home to a number of ASX shares with the potential to grow strongly in the future.

But three ASX shares that have been tipped for enormous growth over the next decade are listed below. Here’s what you need to know about them:

Lovisa Holdings Limited (ASX: LOV)

The first ASX share to look at is Lovisa. It is a fast-fashion jewellery retailer which has been growing strongly for a number of years. Pleasingly, this growth looks unlikely to stop any time soon thanks to management’s bold global expansion plans, which have analysts at Morgans very excited.

Its analysts believe this expansion could lead to Lovisa being “one of the biggest success stories in Australian retail.”

Morgans has an add rating and $24.00 price target on its shares.

Megaport Ltd (ASX: MP1)

Another share to look at is Megaport. It is a leading cloud connectivity and networking solutions provider which has also been growing at a solid rate in recent years. This is thanks to its first mover advantage in a market benefiting from two long-term structural tailwinds. These are the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).

Goldman Sachs is very bullish on Megaport and believes its “opportunity for further growth is immense” due to the “A$129bn p.a. spent on fixed enterprise networking across MP1 geographies).” The broker has a buy rating and $19.90 price target on its shares.

Nitro Software Ltd (ASX: NTO)

A final ASX share to look at is document productivity software company Nitro Software. It is aiming to drive digital transformation with its Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools to customers big and small.

Goldman Sachs is also a very big fan of Nitro, noting that it is a challenger in a US$34 billion total addressable market across PDF productivity, e-signing and workflows. The broker estimates that “Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Goldman has a buy rating and $2.60 price target on its 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. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd, MEGAPORT FPO, and Nitro Software Limited. 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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