With the market starting to rebound, now could be an opportune time to look at buying some beaten down ASX growth shares.
Two that could be worth considering are listed below. Here's what you need to know about them:
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Domino's Pizza Enterprises Ltd (ASX: DMP)
The first beaten down ASX growth share to consider is Domino's. This pizza chain operator's shares have dropped over 40% since the start of the year.
The team at Citi believe this could be a buying opportunity for patient investors. The broker recently reaffirmed its buy rating and $92.95 price target on the pizza chain operator's shares. This implies potential upside of 30% for investors over the next 12 months.
Its analysts continue to see Domino's as a great long term option thanks to its store rollout plans and strong balance sheet. It feels the latter is supportive of potential merger and acquisition (M&A) activity.
It commented:
Our Buy rating is predicated on potential upside from potential M&A activity, upside to long term store rollout and sales on track to rebound later in CY22 once the business has cycled through the abnormal comps.
IDP Education Ltd (ASX: IEL)
Another beaten down ASX growth share that could be worth considering is IDP Education. This provider of international student placement services and English language testing services has seen its shares lose 25% of their value in 2022.
This is despite the company returning to form in FY 2022 and delivering strong growth across the board as demand for its services rebounds from the pandemic.
Goldman Sachs continues to be very positive on IDP Education's prospects. It currently has a buy rating and $35.50 price target on its shares. This implies potential upside of over 30% for investors from current levels.
The broker said:
We see a compelling long-term growth opportunity with a number of drivers: Structural growth in multi-destination student placement markets; supplemented by ongoing recovery in the Australian market; Ability to grow market share in highly fragmented Canadian and UK SP markets; Reinvestment in digital capabilities to increase competitive advantage and strengthen relationships with tertiary institutions and; Consolidation of IELTs business and ability to supplement organic growth with bolt-on acquisitions.
