Are you interested in adding some ASX growth shares to your portfolio this week?
Two ASX growth shares that could be worth considering are listed below. Here's why analysts at Bell Potter are bullish on them:
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Altium Limited (ASX: ALU)
The first ASX growth share to look at is Altium. It is the leading printed circuit board (PCB) design software provider behind the Altium Designer platform.
Thanks to the company's leadership position in a market growing rapidly, Altium's management team has set itself some bold growth targets over the coming years. This includes more than doubling its revenue to US$500 million by 2026 and dominating its market.
Bell Potter is bullish on the company and believes it will achieve its guidance in FY 2022. It commented:
We do not, however, believe this [missing guidance] is the case as: 1. 1HFY22 revenue growth was strong; 2. Altium narrowed the revenue guidance range towards the upper end in late February knowing it would implement these marketing initiatives in Q4; 3. The strong momentum in Octopart in 1HFY22 is likely to continue into 2HFY22 and offset any weakness in China (due to lockdowns) and Russia.
Bell Potter has a buy rating and $34.00 price target on its shares.
Life360 Inc (ASX: 360)
Another ASX growth share that Bell Potter rates highly is location technology company Life360. It has over 30 million active users and is generating material recurring revenue from them.
And while Bell Potter acknowledges that the company isn't profitable yet, it feels investors should look beyond this. This is due to Life360's explosive growth, strong balance sheet, and expectation to be cash flow positive next year.
It commented:
Life360 develops and delivers a mobile app for families – called Life360 – that provides communications, driving safety and location sharing. The company adopts a freemium model to attract customers but has been successfully converting a portion of these customers to paying subscribers over the last several years by providing valuable features. The company has also recently made two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but is expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.
Bell Potter has a buy rating and $7.50 price target on Life360's shares.
