Looking for growth shares to buy? Listed below are two ASX 200 growth shares that have recently been named as buys.
Here’s why they could be top options for growth investors next week:
Allkem Ltd (ASX: AKE)
The first ASX 200 growth share to consider is Allkem. It is one of the world’s leading lithium miners with a collection of world class operations and projects.
Allkem appears well-placed for growth over the next few years thanks to its production growth plans and favourable lithium prices. In respect to the former, although Allkem is already a significant producer of lithium, it recently revealed plans to increase its production three-fold by 2026.
Management notes that this will allow the company to maintain a 10% share of the global lithium market over the next decade.
Morgans is bullish on the company and has an add rating and $16.98 price target on Allkem’s shares. It commented:
AKE has been a strong performer in recent weeks but we continue to see long term valuation upside with persistent tightness in the lithium market.
We don’t think spot prices are likely to remain at current levels forever but we think there is still plenty of scope for contract prices to increase further before settling down into a long term average.
Pro Medicus Limited (ASX: PME)
Another ASX 200 growth share that could be in the buy zone is Pro Medicus. It is an industry-leading provider of software that facilitates the clinical assessment of medical images.
This software has been in demand with healthcare institutions thanks to its ability to process, transfer and store medical images and associated data efficiently. And given that speed and accuracy is fundamentally linked to both treatment success and commercial incentives, it isn’t hard to see why demand is strong and Pro Medicus keeps announcing huge long term contracts.
This has caught the eye of analysts at Bell Potter, which have put a buy rating and $55.00 price target on the company’s shares. The broker commented:
Visage 7 is the fastest, most versatile viewing software on the market and it is the key reason why Pro Medicus has been successful in winning numerous high profile hospital contracts in the US, ahead of some of the largest global names in the industry.
Furthermore, although its shares trade on higher than average multiples, the broker believes that Pro Medicus’ “prospective EPS growth is supportive of this large premium.”