Analysts rate these ASX growth shares as buys this month

These growth shares could be buys in May…

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Looking for growth shares to buy in May? Well, here’s some good news! Listed below are two growth shares that have recently been named as buys with major upside potential.

Here’s what you need to know about them:

Allkem Limited (ASX: AKE)

The first ASX growth share to look at is Allkem. It is one of the world’s leading lithium miners with a collection of high-quality operations across different geographies and lithium type.

As Allkem is already shipping lithium in large quantities, it is allowing the company to benefit from the sky high lithium prices which are being driven by the clean energy transition and the rapid adoption of electric vehicles. This bodes well for its earnings growth in the coming years, especially with management aiming to increase its production three-fold by 2026.

Morgans is a big fan of Allkem and has an add rating and $16.98 price target on its shares.

Dicker Data Ltd (ASX: DDR)

Another growth share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor, which distributes a growing portfolio of products from the world’s leading technology vendors from its new state of the art distribution centre.

Dicker Data recently released its first-quarter update and revealed that its strong growth has continued in FY 2022. The company reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million.

This was driven by a combination of organic growth and a full quarter contribution from the Exeed acquisition.

One leading broker that appears confident this strong form can continue is Morgan Stanley. In response to its first-quarter update, the broker retained its overweight rating and $16.00 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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