Are you wanting to add some ASX growth shares to your portfolio following the market selloff?
If you are, then it could be worth considering the two shares that are listed below. Both have recently been named as buys by analysts and tipped to generate strong returns for investors. Here's what you need to know about them:
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Aristocrat Leisure Limited (ASX: ALL)
The first ASX growth share that could be worth considering following the market selloff is Aristocrat Leisure.
It is one of the world's leading gaming technology companies with a portfolio of in-demand poker machines and a lucrative digital business named Pixel United. The latter is generating significant recurring revenues thanks to its millions of daily active users.
Analysts at Morgans are very positive on the company and recently named it on their best ideas list. Morgans has an add rating and $43.00 price target on its shares, which implies potential upside of 26% for investors. The broker commented:
ALL is a global market leader in the rapidly growing land-based gaming and mobile gaming industries. It has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring. We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles.
TechnologyOne Ltd (ASX: TNE)
Another ASX growth share for investors to look at following the selloff is enterprise software provider TechnologyOne.
It provides its high quality and sticky software to a range of customers. This includes those in the government, local government, financial services, health & community services, education, and utilities and managed services markets.
Analysts at Bell Potter are positive on TechnologyOne. They currently have a buy rating and $14.25 price target on the company's shares, which implies potential upside of 22% for investors.
Bell Potter has been pleased with the company's ongoing transition to become a software-as-a-service (SaaS) focused business and suspects that it could outperform its growth targets. The broker said:
Technology One has had an annual growth target of 10-15% growth in NPAT for a decade but we believe there is potential for the company to lift this annual target to 15-20% at some stage in the next few years.
