Analysts name 2 ASX growth shares to buy with huge upside potential

Here are two ASX growth shares to buy…

| More on:
white arrows symbolising growth

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.

Two that have been named as buys and tipped for strong growth are named below. Here’s why analysts are bullish on them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share for investors to look at is Aristocrat. It is a gaming technology company with a portfolio of world class poker machines and digital games.

It has been growing at a solid rate for well over a decade and has been tipped to continue this trend by the team at Citi. After smashing its forecasts during the first half, Citi is now forecasting a 35% increase in net profit in FY 2022 to $1,168 million.

Looking further ahead, the broker believes that Aristocrat “represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets.”

In light of this, Citi has put a buy rating and $41.00 price target on the company’s shares. Based on the current Aristocrat share price of $33.01, this implies potential upside of 24% for investors.

NextDC Ltd (ASX: NXT)

Another ASX growth share that is rated highly by analysts is NextDC. It is a leading data centre operator which has been benefiting greatly from the structural shift to the cloud.

Pleasingly, this shift still has a long way to go. As a result, NextDC’s world class network of centres across key locations throughout Australia look well-placed to capture increasing demand.

But management isn’t settling for that. It has its eyes on edge centres (regional data centres) and the Asia market. The latter has seen the company open up offices in Singapore and Tokyo.

Goldman Sachs is a fan of NextDC and has a conviction buy rating and $14.20 price target on its shares. Based on the current NextDC share price of $9.78, this implies potential upside of 45%.

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A young man with short black fuzzy hair and wearing a black and white striped t-shirt looks surprised at a broker's tip that Macquarie shares will rise by 30%
Growth Shares

Broker names 2 ASX growth shares to buy this week

Bell Potter thinks these growth shares could be buys...

Read more »

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today
Growth Shares

Here are 3 top ASX growth shares that experts are tipping as buys

These top growth shares are rated as buys...

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Growth Shares

Experts name 2 ASX 200 shares to buy next week

These ASX 200 shares could be buys according to analysts...

Read more »

A xouple consider the pros and cons of taking out a loan
Growth Shares

Experts name 2 ASX growth shares to buy when the market reopens

These growth shares have been tipped as buys...

Read more »

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Growth Shares

2 exciting ASX tech shares to buy now according to analysts

Here are two tech shares that could be buys...

Read more »

A man and woman playing video games.
Growth Shares

Why I think it’s time to load up on these 2 ASX shares

2022 looks like a good year for buying assets.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

2 excellent ASX growth shares to buy now according to brokers

Check out these excellent ASX growth shares...

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Growth Shares

Brokers just rated these ASX 200 shares as buys in August

Pinnacle and Domain are two businesses worth investing in, according to experts.

Read more »