Are you interested in adding some ASX growth shares to your portfolio this month?
If you are, you may want to look at the two listed below that have recently been named as buys by analysts at Goldman Sachs.
Here's what you need to know about them:
Breville Group Ltd (ASX: BRG)
The first ASX growth share to look at is kitchen appliance manufacturer Breville.
Goldman Sachs believes that Breville is well-placed for growth in the coming years thanks to its three-pronged strategy. The broker expects this to underpin an EBITDA compound annual growth rate of 7% between FY 2023 and FY 2025. It recently commented:
We see BRG as having a three-pronged growth strategy: 1) building on secular growth of the portioned and roast & ground (R&G) coffee market and achieving market share gains; 2) new market entry; and 3) options – ecosystem revenue streams.
Goldman has a buy rating and $24.70 price target on its shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that Goldman Sachs rates as a buy is online furniture and homewares retailer Temple & Webster.
Goldman Sachs believes the company is well-placed for long term growth due 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.
