Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the two listed below.
Here's what you need to know about these buy-rated growth shares:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share that has been tipped as a buy is this pizza chain operator.
With its shares down materially this year, analysts at Morgans see a great opportunity to make a long term investment.
The broker highlights that Domino's is "a high quality operator with significant brand strength, first class executive management and a global platform for long-term network expansion."
And with the issues it is facing this year expected to be transitory, it feels that "now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time."
Morgans currently has an add rating and $88.00 price target on its shares. Based on the current Domino's share price, this implies potential upside of 37% for investors over the next 12 months.
NextDC Ltd (ASX: NXT)
Another ASX growth share that is rated highly is NextDC. It is a leading data centre operator exposed to structural tailwinds such as the shift to the cloud.
The team at Morgans is also very positive on the company and is expecting another strong performance in FY 2023. In fact, the broker believes it could even outperform its guidance.
Its analysts note that "structural demand for cloud and colocation remains incredibly strong" and believe this leaves NextDC "comfortably on-track to generate over $300m of EBITDA in the next three to five years." This compares to EBITDA of $169.0 million in FY 2022.
Morgans has an add rating and $13.30 price target on the company's shares. Based on the current NextDC share price, this implies potential upside of 42%.
