If you're searching for growth shares to buy, then two ASX shares listed below could be worth considering.
Both have been named as buys by brokers and tipped to have major upside potential. Here's what they are saying about them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share that could be in the buy zone is Domino's.
It is one of the largest pizza chain operators in the world with a significant presence in the ANZ, European, and Asian regions. But management isn't stopping there. It has set itself a target of 7,250 stores by 2033, which is over double its current footprint.
And while the company is going through a difficult period at the moment, the team at Morgans believe investors should be patient and focus on its long term growth opportunity.
Morgans has an add rating and $90.00 price target on Domino's shares. It commented:
It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP's growth is its ability to roll out new stores all over the world. It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates
Readytech Holdings Ltd (ASX: RDY)
Another ASX growth share to look at is enterprise software provider Readytech.
It has been a strong performer in recent years and delivered the goods again in FY 2022. Last month, Readytech revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million.
Goldman Sachs is expecting more of the same in the future. As a result, it has put a buy rating and $4.30 price target on the company's shares. Goldman commented:
We are constructive on RDY's growth outlook given its defensive end-market exposures (government and education represent ~3/4 of FY23E revenue) and see scope for margins to grow from FY23 onwards, aided by transitioning IT Vision's on-premise customer base to cloud in coming years (generating a 2-3x ARPU uplift).
RDY remains materially undervalued relative to profitable SaaS peers (we estimate >50% discount on growth-adjusted FY24E EV/EBITDA) and is building an impressive track record of organic growth execution which in our view will drive a re-rating over time.
