Are you looking to add some growth shares to your portfolio?
If you are, two explosive ASX growth shares that could be worth considering are listed below. Here's what you need to know about them:
Allkem Ltd (ASX: AKE)
The first ASX growth share to consider is Allkem. It is one of the world's largest lithium miners with projects in Argentina, Australia, and North America.
From these projects, Allkem is aiming to command a 10% share of global lithium supply over the long term. This bodes well for its profits in the coming years, particularly given the strong prices that the battery making ingredient is fetching right now.
Bell Potter's analysts are bullish on Allkem and have a buy rating and $19.45 price target on its shares. The broker commented:
We expect AKE's cash generation to lift substantially into 2023 with ongoing strength in lithium demand, commodity prices and production growth. AKE is aiming to maintain 10% share of supply in a global lithium market experiencing unprecedented growth; it has a portfolio of growth projects, balance sheet strength and cash flow from existing projects to achieve this target. AKE's portfolio is also diversified across lithium commodity type, mode of production, asset location and end-user country.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share that has been tipped for strong growth is online furniture and homewares retailer Temple & Webster.
Goldman Sachs is very positive and believes the company is well-placed for long term growth due to its leadership position in a retail category that is in the early stages of shifting online. Its analysts have a buy rating and $7.55 price target on the company's shares. 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.
