The Australian share market is home to a number of companies with the potential to grow at a strong rate in the future.
Two such shares that analysts rate highly are listed below. Here's what you need to know about these ASX shares:
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Allkem Ltd (ASX: AKE)
The first growth share that is rated highly is this leading lithium miner.
Allkem, which is the result of the merger of Galaxy Resources and Orocobre, owns a collection of high-quality assets including Olaroz, Mt Cattlin, and the Sal de Vida brine project.
Thanks to strong lithium prices due to growing demand and tight supply, Allkem has delivered significant sales and earnings growth in FY 2022. Pleasingly, this is expected to continue in FY 2023 thanks to ongoing strength in prices, the end of older supply contracts at much lower prices, and increasing production.
Looking further ahead, management intends to grow its production three-fold by 2026 and command a 10% share of global lithium production over the long term. This bodes well for its earnings growth in the future.
Morgans is a big fan of the company. It has an add rating and $16.72 price target on its shares. This compares favourably to the latest Allkem share price of $12.34.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another ASX growth share to look at is this pizza chain operator.
Over the last decade, Domino's has been growing at a consistently solid rate thanks to the popularity of its offering and the expansion of its footprint.
And while FY 2022 is likely to be a disappointing year due to a number of headwinds, its future remains very positive. Particularly given how it plans to more than double its ~3,000 store network over the next decade in existing markets.
Citi remains positive on the company and recently retained its buy rating and $92.95 price target on the company's shares. This implies major upside potential from the current Domino's share price of $70.26.
