If you're interested in adding some growth shares to your portfolio in May, 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 in the future. Here's what you need to know about them:
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Aristocrat Leisure Limited (ASX: ALL)
The first growth share for investors to look at is Aristocrat. It is a gaming technology company with a portfolio of world class pokie machines and digital games. The latter includes Raid: Shadow Legends, Heart of Vegas, Mech Arena, and Vikings: War of Clans, which are generating significant recurring revenues from their millions of daily active users.
The team at Citi is very positive on Aristocrat and believes it is well-placed for growth in the future.
Citi commented: "Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets."
The broker currently has a buy rating and $44.00 price target on the company's shares. Based on the current Aristocrat share price of $31.95, this implies potential upside of 38% for investors over the next 12 months.
NextDC Ltd (ASX: NXT)
Another ASX growth share to look at is NextDC. It is a leading data centre operator with a collection of world class centres across key locations throughout Australia. It is also looking to the Asia market and regional Australia for expansion opportunities.
NextDC has been tipped to continue its solid growth in the future thanks to increasing demand for data centre capacity due to the structural shift to the cloud.
Morgans recently commented: "NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites. We see a clear pathway for long-term growth, substantially higher EBITDA and material free cash flow, over the medium term."
The broker has an add rating and $14.64 price target on its shares. Based on the current NextDC share price of $10.85, this suggests potential upside of 35% for investors.
