Experts name 3 ASX growth shares to buy with enormous upside potential

These growth shares could be buys according to experts…

| More on:

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

Are you interested in adding some more ASX shares to your portfolio?

Three ASX growth shares that could be worth considering are listed below. Here's what you need to know about them:

Concept image of a businessman riding a bull on an upwards arrow.

Image source: Getty Images

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world's leading gaming technology companies with a collection of world class poker machines and mobile games that continue to win market share from rivals. But management isn't resting on its laurels. It is planning an expansion into the lucrative real money gaming market. Combined with its major share buyback, this all bodes well for its earnings per share growth in the coming years.

Morgans is a fan of the company and has an add rating and $43.00 price target on its shares. This implies over 28% upside from the current Aristocrat share price of $33.47.

NextDC Ltd (ASX: NXT)

Another ASX growth share to look at is NextDC. It is a leading data centre operator which has been benefiting greatly from the shift to the cloud, which accelerated during the pandemic. The good news is that this shift still has a long way to go, which bodes well for demand for NextDC's existing centres. It is also constructing new centres to capture increasing demand and looking at expansions into other markets.

Goldman Sachs is positive on the company and has a buy rating and $14.20 price target on its shares. This compares to the latest NextDC share price of $10.09, implying over 40% upside for investors.

TechnologyOne Ltd (ASX: TNE)

A final ASX growth share to look at is enterprise software provider TechnologyOne. It has been around for decades but has only recently decided to follow the lead of Microsoft et al in transitioning to a software-as-a-service (SaaS) focused business. Pleasingly, this transition is going very well and management believes it is on course to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Goldman Sachs is also very positive on Technology One. The broker currently has a buy rating and $13.30 price target on its shares. This suggests potential upside of 30% for investors from the current TechnologyOne share price of $10.25.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has recommended TechnologyOne Limited. 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 woman pulls devil rock'n'roll hands and sticks her tongue out whilst headbanging, she's rocking it.
Growth Shares

This ASX tech stock has exploded 75% in a month, but can it climb higher?

The most optimistic broker sees another 90% upside ahead!

Read more »

A couple sit in their home looking at a phone screen as if discussing a financial matter.
Share Market News

2 beaten-down ASX shares to hold until 2036

These stocks look well-positioned for growth over the next decade.

Read more »

Happy work colleagues give each other a fist pump.
Growth Shares

3 amazing ASX growth shares to buy and hold forever

Looking to make long-term investments? Here are three to consider.

Read more »

Robot humanoid using artificial intelligence on a laptop.
Growth Shares

Why Megaport just landed its biggest ever AI infrastructure contract

Megaport has had a great week. It seems large clients are starting to appreciate its vertically integrated product offering.

Read more »

A graphic image of the world globe surrounded by tech images is superimposed on the setting of an office where three businesspeople are speaking together while standing.
Growth Shares

Is the TechnologyOne share price an opportunity too good to pass up?

Should investors look at this tech stock as a great opportunity?

Read more »

A man leaps as high as he can over his friends into a pool.
Share Market News

Down 42% this year, is it time to jump into Life360 shares?

Crashing shares: golden opportunity or value trap?

Read more »

Soldier in military uniform using laptop for drone controlling.
Growth Shares

After a rollercoaster start to the year, are Droneshield shares headed up?

Droneshield shares look cheap after a rollercoaster past twelve months.

Read more »

Two lab workers fist pump each other.
Growth Shares

Why Pro Medicus shares could still have their best years ahead

Pro Medicus has been through a rough patch. With future growth catalysts and durable competitive advantages, brokers are tipping this…

Read more »