Looking for growth shares to buy in October? Then you may want to check out the two listed below that brokers rate highly.
Here's why these ASX growth shares have been named as buys:
Jumbo Interactive Ltd (ASX: JIN)
This online lottery ticket seller could be an ASX growth share to buy this month.
That's the view of analysts at Morgans, which were impressed with the company's performance in FY 2022 and remain confident on its outlook.
This is thanks to its defensive qualities and the Powered by Jumbo software-as-a-service (SaaS) platform's international opportunity. It commented:
We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia. Although near-term sales are affected by the frequency of large jackpots, over time growth is steady.
The broker currently has an add rating and $17.50 price target on the company's shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that brokers say investors should buy in October is Temple & Webster. It is Australia's leading pure-play online retailer of furniture and homewares.
Analysts at Goldman Sachs are tipping the company for strong long term growth. This is thanks to its leadership position in a retail category that is still only in the early stages of shifting online. It commented:
Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.
Goldman has a buy rating and $7.55 price target on the company's shares.