If you're a growth investor with room for some new portfolio additions in June, then it could be worth considering the two ASX growth shares listed below.
Here's what you need to know about these buy-rated ASX shares:
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Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share that could be a buy is Aristocrat. It is a gaming technology company with a portfolio of world class pokie machines and digital games.
In respect to the latter, the company's growing Pixel United portfolio includes popular games such as Raid: Shadow Legends, Heart of Vegas, Mech Arena, and Vikings: War of Clans. These are generating significant recurring revenues from their millions of daily active users.
Analysts at Citi are very positive on Aristocrat and believe it is well-placed for growth. 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 $41.00 price target on the company's shares.
Xero Limited (ASX: XRO)
Another ASX growth that could be in the buy zone is Xero. It is a cloud-based accounting solution platform provider to small and medium sized businesses globally.
Xero recently released its FY 2022 results and revealed a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion. This was underpinned by a 19% increase in total subscribers to 3.3 million thanks to growth in all markets.
The good news is that Goldman Sachs expects this strong form to continue. It is forecasting a 26.5% increase in revenue to NZ$1.387.1 billion in FY 2023. After which, it is expecting Xero's revenue to reach almost NZ$2 billion by FY 2025.
But it is unlikely to stop there given its total addressable market of 45 million subscribers globally and plans to monetise its growing user base with its app store.
Goldman Sachs has a buy rating and $118.00 price target on its shares.
