The good news for growth investors is that there are plenty of shares on the Australian share market with strong long term growth potential.
Two such shares are listed below. Here's why analysts are very positive on their long term growth prospects:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat could be an ASX growth share to buy. It is a gaming technology company best-known for its industry-leading poker machines. However, it is so much more. The company also has a digital business, named Pixel United, which is generating significant recurring revenues from its growing portfolio of mobile games. These include games such as Raid: Shadow Legends, EverMerge, Big Fish Casino, and Vikings: War of Clans.
But management isn't resting on its laurels. As well as investing heavily in research and development each year, it is aiming to expand and win a big share of the emerging real money gaming market.
Citi is very positive on Aristocrat. Its analysts believe the company "represents a compelling long-term growth story." Citi currently has a buy rating and $41.00 price target on the company's shares. This implies potential upside of 18% for investors.
Xero Limited (ASX: XRO)
Another ASX growth that could be a buy is Xero. It is a cloud-based accounting solution platform provider taking on the likes of MYOB, Quickbooks, and Sage.
Pleasingly, despite this competition, Xero continues to grow at a rapid rate. For example, in FY 2022, the company delivered 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 supported by a 19% increase in total global subscribers to 3.3 million thanks to growth in all markets.
And while 3.3 million may sound like a large number, it is still only a small slice of its total addressable market of 45 million subscribers globally. Thanks to this and its plan to further monetise its growing user base, Goldman Sachs believes Xero has a very long growth runway.
As a result, the broker currently has a buy rating and $118.00 price target on its shares. This implies potential upside of 42% for the Xero share price.
