If you're wanting to pick up some ASX growth shares before the market rebounds, then you may want to consider the two listed below.
Both of these growth shares have been tipped as buys with material upside potential. Here's what you need to know about them:
TechnologyOne Ltd (ASX: TNE)
The first ASX growth share that could be a top option for investors is TechnologyOne.
It is a leading enterprise software provider which services both government and private sector clients across the ANZ and UK regions.
The team at Bell Potter see plenty of upside for the company's shares over the next 12 months. Its analysts currently have a buy rating and $14.25 price target on them.
Thanks to the ongoing success of its software as a service (SaaS) transition, Bell Potter suspects that the company could lift its growth targets in the near future. It commented:
We continue to believe there is the potential for the company to lift its annual PBT growth target from 10-15% to 15-20% from next year and our forecasts are consistent with this uplift. But we also believe there is some conservatism in our FY23 and FY24 forecasts as we only forecast PBT margin improvement of c.100bps in both periods whereas we believe there is potential for the margin increase to be closer to 150bps.
Xero Limited (ASX: XRO)
Another ASX growth share that could be in the buy zone right now is Xero.
It is a fast-growing cloud-based accounting solution provider to ~3.3 million small and medium sized businesses globally.
And while this is a large number, it is still only a small slice of an overall market opportunity estimated to be 45 million subscribers. This gives Xero and its highly rated and sticky platform a major runway for growth over the next decade and beyond.
It is partly for this reason that Goldman Sachs is a big fan of the company and believes Xero is well-placed for long term growth. It currently has a buy rating and $111.00 price target on Xero's shares.
The broker previously commented:
Key pillars of our buy thesis are: (1) Xero has a long runway for cloud accounting growth (in existing and new markets); (2) can drive earnings through monetisation of its ecosystem; (3) has highly attractive unit economics; and (4) substantial barriers to entry at scale.
