If you're looking for some new growth shares to buy following the market meltdown, then it could be worth considering the two ASX shares listed below.
Both of these ASX shares have been tipped as buys with major upside potential. Here's what you need to know about them:
Lovisa Holdings Limited (ASX: LOV)
The first ASX growth share that could be in the buy zone Lovisa. Especially with the growing fast-fashion jewellery retailer's shares trading 21% lower year to date.
Analysts at Morgans are very positive on Lovisa due to its highly experienced management team and bold global expansion plans. It is for these reasons that the broker suspects that Lovisa could "prove to be one of the biggest success stories in Australian retail."
And while its analysts acknowledge that a sizeable investment will be needed to expand its network in the US and Europe and to take the brand into new markets, it believes the returns could be stellar if successful.
Morgans currently has an add rating and $24.00 price target on its shares. This compares to the latest Lovisa share price of $15.85.
Megaport Ltd (ASX: MP1)
Another growth share that could be in the buy zone is Megaport. It is the leading global provider of elastic interconnection services, which has seen its shares crash 62% in 2022.
Megaport's platform uses software defined networking (SDN) to rapidly connect users of its network to other services across the Megaport Network. The company notes that its service simplifies a hybrid cloud strategy by enabling dedicated private connectivity to on-premise facilities and direct connectivity to the public cloud from one place.
So, with the structural shift to the cloud continuing, Megaport appears well-placed to benefit from increasing demand and higher spending on enterprise networking.
Goldman Sachs, for example, estimates that the company's "opportunity for further growth is immense [with] GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies."
In light of this, the broker has a buy rating and $13.10 price target on its shares. This compares favourably to the latest Megaport share price of $7.21.
